130 ve beenbew suc 4. Four roommates are planning to spend the weekend in their dorm suite watching old latsiond movies, and they are debating how many to watch. The table below contains their willingness to pay for each film. 1st film 2nd film 3rd film 4th film 5th film John $7 $6 $5 $4 $3 figos Paul $5 $4 $3 $2 $1 1 Toiler13 sul slag George $3 $2 $1 $0 $0 Ringou $2 $1 $0 d $0 $0 2heo TETUA (6 thoug aduc ton onderd amallabivora temovog stanob wW S 2159712 vi sil e. Suppose they agree in advance to choose the efficient number of movies and split the cost based on willingness to pay. Does John have an incentive to tell the truth? Why or why not?

130 ve beenbew suc 4. Four roommates are planning to spend the weekend in their dorm suite watching old latsiond movies, and they are debating how many to watch. The table below contains their willingness to pay for each film. 1st film 2nd film 3rd film 4th film 5th film John $7 $6 $5 $4 $3 figos Paul $5 $4 $3 $2 $1 1 Toiler13 sul slag George $3 $2 $1 $0 $0 Ringou $2 $1 $0 d $0 $0 2heo TETUA (6 thoug aduc ton onderd amallabivora temovog stanob wW S 2159712 vi sil e. Suppose they agree in advance to choose the efficient number of movies and split the cost based on willingness to pay. Does John have an incentive to tell the truth? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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