3. Problems 11-5 Four roommates are planning to spend the weekend in their dorm room watching...
5. Problems and Applications Q5 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 (Dollars) Andrew Darnell Jacques Musashi First film 10 9 6 3 Second film 9 7 4 2 Third film 8 5 2 1 Fourth film 7 3 0 0 Fifth film 6 1 0 0 Within the dorm room, the...
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: Within the dorm room, the showing of a movie (is not or is) a public good. If it costs $12 to rent a movie, the roommates should rentmovies in order to maximize the total surplus. Suppose the roommates choose to rent the optimal number of movies you just...
5. Problems and Applications Q5 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 (Dollars) Kevin Rajiv Yakov Charles First film 10 9 6 3 Second film 9 7 4 2 Third film 8 5 2 1 Fourth film 7 3 0 0 Fifth film 6 1 0 0 Within the dorm room, the...
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 (Dollars) Paolo Van Carlos Felix First film 10 9 6 Second film 97 42 Third film Fourth film Fifth film t》 Within the dorm room, the showing of a moviea public good If it costs $8 to rent a movie, the roommates should rent movies...
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 (Dollars) Eric Kenji Paolo Van First film 10 9 8 3 Second film 8 7 6 2 Third film 6 5 4 1 Fourth film 4 3 2 0 Fifth film 2 1 0 0 Within the dorm room, the showing of a movie (...
Public Goods: Four roommates are planning to spend the weekend in their dorm room watching pay per view movies, and they are debating how many to watch. The following gives their willingness to pay (marginal benefit) for each film: Ang Greta Shonda J.J. First film $8 $5 $4 $2 Second film $6 $4 $2 $1 Third film $5 $3 $1 $0 Fourth film $1 $2 $0 $0 Fifth film $0 $1 $0 $0 Anyone in the room is able to...
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: Orson Alfred Woody Ingmar Frist film 7 5 3 2 Second film 6 4 2 1 Third film 5 3 1 0 Fourth film 4 2 0 0 Fifth film 3 1 0 0 b. If it costs $8 to rent a video, how many videos should the...
8. Problems and Applications Q8 Five roommates are planning to spend the weekend in their dorm room watching movies, and they are debating how many movies to watch. Here is their willingness to pay: Willingness to Pay (Dollars) Shen Antonio Dmitri Manuel Jake First film 14 10 8 2 Second film 12 8 4 2 0 Third film 10 2 0 0 Fourth film 6 2 0 0 0 Fifth film 2 0 0 0 0 Buying a DVD costs...
On page 180 of the text there is a very simple personal example of three roommates who set up cost allocation. The allocation was for rent, TV, internet and groceries. The the cost allocation system was using the three roommates as equals so the cost allocation was the total cost divided by three. That method worked our for a short period of time then each roommate found specific reasons why that cost allocation system did not work "fairly". One example...