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?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

1. Kim owns a Porsche and a Toyota. The Porsche has a fuel economy of 15 miles per gallon (mpg) and she plans to drive it 3,000 miles this year. The Toyota gets 30 miles per gallon and she plans to drive it 15,000 miles this year. Suppose Kim can install a device that improves the fuel economy of any vehicle by 5 miles per gallon. However, she only has one of the devices. Which vehicle should she install it on if her goal is to minimize fuel consumption this year? Assume that the device does not hamper vehicle performance in any way.
# 10 An example of efficiency in economics is Select one: Satisfying wants with as many resources as possible Simplifying reality in economic models as much as possible Minimising outputs given inputs Maximising outputs given inputs
Daniel Jones thought he was getting his girlfriend the best surprise Valentine’s Day gift ever. He bought two airline tickets for the couple to fly from their home in Cambridge, England to Belfast, Northern Ireland to see her favorite band, the Red Hot Chili Peppers. With over 80 million records sold worldwide, Red Hot Chili Peppers are one of the best-selling bands of all time. Jones’ girlfriend had always wanted to see the band perform live, and Jones thought nothing could be better than a romantic trip to see the band play live on Valentine’s Day. Jones managed to keep the concert tickets a surprise until they landed in Belfast – in their hotel room she opened the envelope in which he had placed the concert tickets for her favorite band. Jones was surprised when his girlfriend, rather than jumping for joy, simply turned to him with a puzzled look on her face. It was then that Jones looked more carefully at the tickets, to realize that he had purchased two seats for a performance by…
#12 ch. 13 Can you explain what the correct one is and why? Can you also explain why the other ones are incorrect?
Assume two moms live next to each other and both have one preschooler. They meet each other for the first time and discover that both of them work part-time twice a week. It turns out that both of them have their children attend a child care facility close to home. Furthermore, they each learn that when one mom is working the other is at home and vice versa. One of the moms has an idea and proposes to the other mom that each take care of the other's child while they work. That way they can save money on child care. If they do this, what will happen to the official GDP reported by the government and why? Is society necessarily worse off as a result of this arrangement?
5. Canada’s prime minister, Justin Trudeau has declared that 60% of car sales will be electric by 2030 (8 years from now) and 100% of car sales by 2035. In 2018, only 8% of car sales were of electric cars. What information (benefits, costs) would you require to know if Trudeau’s goals are reasonable or desirable?
You'd like to study social networks. Consider the following 7 people {A,B,C,D,E,F,G} in a social network graph. (These people can be thought of as "nodes" or points drawn on a piece of paper.) Here, we'd like to model "followers." How many different ways can we draw arrows between two people from these 7? Here, "A-->B" (A is a follower of B) is not the same as "B-->A" (B is a follower of A). Order matters here
3. Voluntary contributions toward a public goodLarry and Raphael are considering contributing toward the creation of a public park. Each can choose whether to contribute $400 to the public park or to keep that $400 for a new suit.Since a public park is a public good, both Larry and Raphael will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.80 of benefit. For example, if both Larry and Raphael choose to contribute, then a total of $800 would be contributed to the public park. So, Larry and Raphael would each receive $640 of benefit from the public park, and their combined benefit would be $1,280. This is shown in the upper left cell of the first table.Since a new suit is a private good, if Larry chooses to spend $400 on a new suit, Larry would get $400 of benefit from the new suit and Raphael wouldn't receive any benefit from Larry's choice. If Larry still spends $400 on a new suit and…
Becky and Sarah are sisters 1who share a room. Their room can easily get messy, and their parents am always telling them to tidy it. Here are the costs and benefits to both Becky and Sarah, of taking the time to clean their room: If both Becky and Sarah clean, they each spends two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to cleanâ€”Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoners dilemma table.) Unfortunately, we know that the optimal outcome will most liker not happen, and that the sisters probably will choose the worst one instead. Explain what it is about Beckys and Sarahs reasoning that will lead them both to choose the worst outcome.
Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first, second, and third choice and then vote on the options. Table 18.2 shows their first, second, and third choice preferences. Explain why they will have a hard time teaching a decision. Does the group prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking?