MindTap - Cengage Learning X Course Hero x S Consider a market in which Ber X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5984331885001331312624185366&elSBN=9780357133699&id=1196368955&snapshotld=2428402& Apps M Gmail Reading List Amber CENGAGE | MINDTAP Q Search this course ? Topic 3 Assignment X My Home 6 . Problems and Applications Q5 Courses Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here is their Catalog and Study Tools willingness to pay for each film: A-Z Rental Options Willingness to Pay College Success Tips (Dollars) Jacques Musashi Sean Bob Career Success Tips First film 5 3 2 A 2 ? Second film Help Third film UT W 1 0 Give Feedback Fourth film A 0 O - N Fifth film 3 Within the dorm room, the showing of a movie a public good. If it costs $8 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+ This means that each roommate will pay $ O Complete the following table with each roommate's total willingness to pay for this many movies and the surplus each person obtains from watching the movies.MindTap - Cengage Learning X Course Hero x S Consider a market in which Ber X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5984331885001331312624185366&elSBN=9780357133699&id=1196368955&snapshotld=2428402& Apps M Gmail Reading List Amber CENGAGE | MINDTAP Q Search this course ? My Home Topic 3 Assignment X Courses Complete the following table with each roommate's total willingness to pay for this many movies and the surplus each person obtains from watching Catalog and Study Tools the movies. A-Z Total Willingness to Pay Consumer Surplus Rental Options Roommate (Dollars) (Dollars) O College Success Tips Jacques Musashi Career Success Tips Sean Bob ? Help 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 receives. Give Feedback The practical problem with this solution is that each roommate has an incentive to the value of the movies to him. Suppose they agree in advance to choose the efficient number and to split the cost of the movies equally. True or False: When Jacques is asked his willingness to pay, he will have an incentive to understate the value of the movies to him. O True O False A+ This examples teaches you that the optimal provision of a public good will occur if individuals an incentive to hide their valuation of the good. Grade It Now Save & Continue O Continue without saving