4. Four roommates are planning to spend the weekend in their dorm suite watching old 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 Paul $5 $4 $3 $2 $1 George ઝાઝાન કાર stihosta 01 130 ve 02hliew and a. Within the dorm room, is the showing of a movie a public good? Why or why not? twold don underd emali ubivos Ringou $2 $1 $0 d $0 $0 b. If it costs $8 to rent a movie, how many movies should the roommates rent in order to maximize total surplus? 20E07 JETUA 16 C. If they chose this optimal number of movies and split the cost evenly, how much surplus does each person receive from renting these movies?

4. Four roommates are planning to spend the weekend in their dorm suite watching old 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 Paul $5 $4 $3 $2 $1 George ઝાઝાન કાર stihosta 01 130 ve 02hliew and a. Within the dorm room, is the showing of a movie a public good? Why or why not? twold don underd emali ubivos Ringou $2 $1 $0 d $0 $0 b. If it costs $8 to rent a movie, how many movies should the roommates rent in order to maximize total surplus? 20E07 JETUA 16 C. If they chose this optimal number of movies and split the cost evenly, how much surplus does each person receive from renting these movies?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Four roommates are planning to spend the weekend in their dorm suite watching old olent atsomos 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 Paul $5 $4 $3 $2 $1 an rud bas Vedda nowoc 2102 gulden et 150 yebesnbew sho George $3 $2 $1 $0 $0 (nast il qalihe: 0 sx sig Ringo og $2 $1 $0 $0 $0 Taboog dikdug dan one dorld amasi obivond themsvog srl: asobydw 20607 1610A (b 2)99712 vdio (9 it sins 0.6 d. Is there any way to split the cost so that everyone benefits? What problems arise with this plan?