Chrome File Edit View History Bookmarks Profiles Tab Window Help 9 9 8 Sat Jul 3 12:15 PM MindTap - Cengage Learning X Course Hero X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5984331885001331312624185366&elSBN=9780357133699&id=1196... Apps M Gmail Reading List 19 Amber v CENGAGE |MINDTAP ? Dexter and Jillian & colle Q Search this course Neiko/Nicky My Home Topic 3 Assignment X Courses 6 . Problems and Applications Q5 Catalog and Study Tools Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here Cleo special pictures willingness to pay for each film: A-Z ref Rental Options College Success Tips Willingness to Pay Career Success Tips (Dollars) Paolo Van Carlos Felix ? recommendations Help First film LC 9 8 3 Give Feedback Second film 8 7 6 N Third film 6 w UT NA Fourth film 4 Fifth film 2 1 pongo Within the dorm room, the showing of a movie a public good. If it costs $12 to rent a movie, the roommates should rent movies in order to maximize the total surplus. Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally. A+ V den- ECN-351 Readings JUL 3 WChrome File Edit View History Bookmarks Profiles Tab Window Help 9 9 8 Sat Jul 3 12:15 PM MindTap - Cengage Learning X Course Hero X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5984331885001331312624185366&eISBN=9780357133699&id=1196... Apps M Gmail Reading List 19 CENGAGE |MINDTAP Dexter and Jillian & colle Amber v Q Search this course ? Neiko/Nicky My Home Topic 3 Assignment X Courses This means that each roommate will pay |$ Catalog and Study Tools Cleo special pictures A-Z ref Rental Options Complete the following table with each roommate's total willingness to pay for this many movies and the surplus each person obtains from wa College Success Tips the movies. O Career Success Tips Total Willingness to Pay Consumer Surplus Roommate (Dollars (Dollars ? Help recommendations Paolo Give Feedback Van Carlos Felix In order to split the cost in a way that ensures that everyone benefits, the cost could be divided up based on the benefits each roommate rece pongo Screen Shot The practical problem with this solution is that each roommate has an incentive to the value of the movies to him. 2021-07-0....34 PM.png Suppose they agree in advance to choose the efficient number and to split the cost of the movies equally. True or False: When Paolo is asked his willingness to pay, he will have an incentive to tell the truth. A+ O True den- ECN-351 Readings JUL 3 WChrome File Edit View History Bookmarks Profiles Tab Window Help 9 9 8 Sat Jul 3 12:16 PM MindTap - Cengage Learning X Course Hero X + ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5984331885001331312624185366&elSBN=9780357133699&id=1196... Apps M Gmail Reading List ? 19 Dexter and Jillian & colle Amber v CENGAGE |MINDTAP Q Search this course Neiko/Nicky My Home Topic 3 Assignment X the movies. Courses Total Willingness to Pay Consumer Surplus Catalog and Study Tools (Dollars) (Dollars) Cleo Roommate special pictures Paolo A-Z ref Rental Options Van College Success Tips Carlos Felix Career Success Tips ? In order to split the cost in a way that ensures that everyone benefits, the cost could be divided up based on the benefits each roommate rece recommendations Help Give Feedback The practical problem with this solution is that each roommate has an incentive to the value of the movies to him. 1 1 2 Suppose they agree in advance to choose the efficient number and to split the cost of the movies equally. True or False: When Paolo is asked his willingness to pay, he will have an incentive to tell the truth. pongo Screen Shot O True 2021-07-0....34 PM.png O False This examples teaches you that the optimal provision of a public good will occur if individuals an incentive to hide their val the good. A+ V den- Screen Shot 2021-07-0....58 PM.png ECN-351 Readings JUL 3 W
