The answer is False. The cost to clean the lake for each resident is $8 per hour (32÷4). Lydia's willingness to pay for 6 hours is $5 and the cost to clean the lake for her is $8. In other words her willingness to pay is less than the cost that she will bear. So the statement is False.
Table 11-6 Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia....
Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. Acres Mary $14 10 6 4 2 0 0 Bill $18 14 10 Tricia $30 26 2 3 18 14 10 1 0 Refer to Table 11-1. Suppose the cost to build the park is...
3. Problems 11-5 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 6 First film Second film Third film Fourth film Fifth film Within the dorm room, the showing of a movie a public good. If it costs $8 to rent a movie, the roommates should rent 3 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) 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...
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...
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) 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 (...