uiz $5($Ch$.10$ & $11)$

$24$:$34$

ack to Assignment

Attempts

Score $/7$

$3.$ Problems and Applications Q$5$

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:

$\backslash$table$[[,$Willingness to Pay,$],[,($Dollars$),],[,$Tim,Brian,Edison,Kevin$],[$First 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,$3,1,0,0]]$

Within the dorm room, the showing of a movie $$ a public good.

If it costs $$8$ to rent a movie, the roommates should rent $$ movies in order to maximize the total surplus.

Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally.

This means that each roommate will pay $$