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27 Jan 2023
7. Ch. 11 Problems and Applications Q5
Four roommates are planning to spend the weekend in their dorm watching old movies, and they are debating how many to watch. Here is their willingness to pay for each film:
Willingness to Pay
(Dollars)
Andrew
Darnell
Jacques
Musashi
First film
10
9
8
3
Second film
8
7
6
2
Third film
6
5
4
1
Fourth film
4
3
2
0
Fifth film
2
1
0
0
Within the dorm room, the showing of a movie ______ a public good.
If it costs $12 to rent a movie, then roommates should rent ______ movies in order to maximize the total surplus.
Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally.
This means that each roommate will pay $______
7. Ch. 11 Problems and Applications Q5
Four roommates are planning to spend the weekend in their dorm watching old movies, and they are debating how many to watch. Here is their willingness to pay for each film:
| Willingness to Pay |
| (Dollars) |
| Andrew | Darnell | Jacques | Musashi | |
| First film | 10 | 9 | 8 | 3 |
| Second film | 8 | 7 | 6 | 2 |
| Third film | 6 | 5 | 4 | 1 |
| Fourth film | 4 | 3 | 2 | 0 |
| Fifth film | 2 | 1 | 0 | 0 |
Within the dorm room, the showing of a movie ______ a public good.
If it costs $12 to rent a movie, then roommates should rent ______ movies in order to maximize the total surplus.
Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally.
This means that each roommate will pay $______
sarafmuskan2Lv1
27 Jan 2023
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