Question

Four consumers are willing to pay these amounts for haircuts, and four haircutting businesses have these costs. What is the total amount that the businesses can earn from the consumers?

1) Cannot be determined
2) Less than $10
3) Between $10 and $20
4) More than $20

Answer 1

The total earnings businesses can make from the four consumers cannot be determined with the given information, as it lacks the specifics of consumer willingness to pay and the individual costs for businesses.

Step-by-step explanation:

The total amount that businesses can earn from consumers cannot be precisely calculated based on the provided information alone. The passages provided suggest a situation where prices and costs are considered, but specific amounts consumers are willing to pay or the precise costs for haircutting businesses are not provided.

1) Cannot be determined.

The key concept here is the average total cost of haircuts, which is found by dividing the total cost by the quantity of output. The total cost of producing 40 haircuts is given as $320, making the average total cost $8 per haircut. However, this does not address the total revenue potential from four consumers directly.

Without knowing the specific willingness to pay of the four consumers or the costs of the four businesses in question, one cannot determine the total earnings. The average total cost information provided indicates the cost side of the business but does not directly relate to the revenue that could be generated from the provided consumer willingness to pay.