Safari File Edit View History Bookmarks Develop Window Help M Sun Oct 16 5:27 PM The Safety, Phar. how to screensh... een Shot CENGAGE |MINDTAP Q Search this course ? 0...6.53 PM Topic 3 Assignment X Back to Assignment een Shot 10...5.55 PM Attempts Average / 7 A-Z 7. Ch. 11 Problems and Applications Q5 een Shot 10...5.53 PM 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 willingness to pay for each film: Willingness to Pay reen Shot 10...7.35 PM ? Dollars Kevin Rajiv Yakov Charles First film 5 3 Second film 4 2 bongo een Shot Third film 5 10...7.30 PM W Fourth film 4 ooo N Fifth film 3 1 een Shot 10...3.25 PM A+ 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. reen Shot 10...3.22 PM Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally. V 4,554 OCT 12 16 tv Out TASafari File Edit View History Bookmarks Develop Window Help M Sun Oct 16 5:28 PM The Safety, Phar. G how to screensh.. een Shot CENGAGE |MINDTAP Q Search this course ? 10...7.57 PM Topic 3 Assignment X This means that each roommate will pay $ een Shot 10...6.53 PM A-Z Complete the following table with each roommate's total willingness to pay for this many movies and the surplus each person obtains from watching een Shot the movies. 10...5.55 PM Total Willingness to Pay Consumer Surplus Roommate (Dollars) (Dollars) Kevin Rajiv reen Shot 10...5.53 PM ? Yakov Charles 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. bongo een Shot 10...7.35 PM 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. reen Shot 10...7.30 PM True or False: When Kevin is asked his willingness to pay, he will have an incentive to tell the truth. A+ True O False reen Shot 10...3.25 PM V This examples teaches you that the optimal provision of a public good will occur if individuals an incentive to hide their valuation of 4,554 120 OCT 12 16 2 tvSafari File Edit View History Bookmarks Develop Window Help M Sun Oct 16 5:28 PM The Safety, Phar. G how to screensh.. een Shot D CENGAGE |MINDTAP Q Search this course ? 10...7.57 PM Topic 3 Assignment X the movies. een Shot Total Willingness to Pay Consumer Surplus 10...6.53 PM Roommate (Dollars) (Dollars) Kevin A-Z Rajiv Yakov een Shot 10...5.55 PM Charles 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. reen Shot The practical problem with this solution is that each roommate has an incentive to the value of the movies to him. 10...5.53 PM ? Suppose they agree in advance to choose the efficient number and to split the cost of the movies equally. True or False: When Kevin is asked his willingness to pay, he will have an incentive to tell the truth. bongo een Shot 10...7.35 PM True O False reen Shot This examples teaches you that the optimal provision of a public good will occur if individuals an incentive to hide their valuation of 10...7.30 PM the good. A+ Grade It Now Save & Continue Continue without saving 4,554 OCT 12 16 . tv A