There are four hospitals (consumers in this example) willing to pay the following amounts for a ...

Similar question with its solution.

Hope it helps

I'm getting this part of the question wrong, I'm not sure why I'm getting it wrong.

What is the highest possible surplus that can be realized in the market for ventilators? Which hospitals should consume these ventilators? Which producers should make ventilators?

Is there something in the solution that suggests the answer?

nope

I found something else, maybe it will help:



The answer is given below with explaination step by step

1.
D
W
80,000

If only one ventilator can be produced, it should be mad by Producer D because he has the lowest cost of producing it.
C>B>A>C
 
If only one ventilator can be produced, it should be consumed by Hospital W because he has the highest willingness to pay.
W>Z>X>Y
 
Hospital W, 90,000 less Producer D, 10,000 is equal to 80,000

2.
115,000
W,X,YZ
A, B, C, D

The highest possible surplus is 115,000 which occurs when A,B,C, and D produce it and consumed by W, X, Y, and Z. This is because the willingness to pay of each consumers exceed the cost for each producers.

Not sure if the answers are right, but hopefully you can verify it based on what you know about the subject

TY :)

Thank you so much

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