are debating how many to watch. Here is their willingness to pay for each film: Dwayne First film Second film Third film Fourth film Fifth film $7 6 5 4 3 Javier Salman Chris $3 $5 4 3 2 1 2199 $2 1 0 a a 0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? b. If it costs $8 to stream a movie, how many movies should the roommates stream to maximize total surplus? c. If they choose the optimal number from part.(b) and then split the cost of streaming the movies equally, how much surplus does each person obtain from watching the movies?

are debating how many to watch. Here is their willingness to pay for each film: Dwayne First film Second film Third film Fourth film Fifth film $7 6 5 4 3 Javier Salman Chris $3 $5 4 3 2 1 2199 $2 1 0 a a 0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? b. If it costs $8 to stream a movie, how many movies should the roommates stream to maximize total surplus? c. If they choose the optimal number from part.(b) and then split the cost of streaming the movies equally, how much surplus does each person obtain from watching the 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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