4. Four roommates are planning to spend the weekend in their dorm suite watching old olent atsomosmovies, and they are debating how many to watch. The table below contains theirwillingness to pay for each film.1st film2nd film3rd film4th film5th filmJohn$7$6$5$4$3Paul$5$4$3$2$1an rud basVedda nowoc2102 guldenet 150 yebesnbew shoGeorge$3$2$1$0$0(nast il qalihe: 0 sx sigRingo og$2$1$0$0$0Taboog dikdug dan one dorld amasi obivond themsvog srl: asobydw20607 1610A (b2)99712 vdio (9it sins 0.6d. Is there any way to split the cost so that everyone benefits? What problems arise with this plan?

Answered: - Four roommates are planning to spend…

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?

Expert Solution

Step 1

Willingness to Pay is defined as the maximum amount or price a consumer is willing to pay for the consumption of a good or a service.

Given,

$F o u r r o o m m a t e s a r e p l a n n i n g t o s p e n d t h e i r w e e k e n d i n t h e i r r o o m s w a t c h i n g o l d m o v i e s . T h e y a r e d e b a t i n g h o w m a n y m o v i e s t o w a t c h . T h e w i l l i n g n e s s t o p a y i s f o r e a c h r o o m m a t e i s g i v e n a s f o l l o w s :$

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