Okay, this one was giving people grief today. My hint is to graph it out. Basic supply & demand. And yes, Nicki, I *was* confusing you today - I realized why during lunch. I was looking at it upside down (I know, it's terrible of me). Make sure to graph the correct quantity and price - with demand, at the lowest price there will be more than one person wanting it. In supply, at the highest price there will be more than one person wanting to produce it. That's the basics of the Laws of Supply & Demand.
There are four consumers willing to pay the following amoutn for haircuts:
Jerry-$7, Oprah-$2, Sally Jessy-$8, Montel-$5
There are four haircutting businesses with the following costs:
Firm A:$3, Firm B:$6, Firm C:$3, Firm D: $2
Each firm has the capacity to give only one haircut. For efficiency, how many haircuts should be given? Which businesses will cut hair, and which consumers should have their hair cut?
2 comments:
I know - I'm an awful person. I have no excuses.
Well, I have some excuses, but they're not good ones.
This is a tough question. Very tough.
You don't need to tell who will get their haircut by which firm - in fact, you can't answer that, you don't have the information.
And the second thing...not all people will get their hair cut, and not all firms will cut hair.
So who won't get their hair cut, and why?
Who won't cut any hair, and why?
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