For each of the four roommates listed below, we chart their willingness to pay t
ID: 1152880 • Letter: F
Question
For each of the four roommates listed below, we chart their willingness to pay to watch a movie in their dorm room this weekend: Willingness to Pay Consumer Zoe Virginia Penelope Tenley $10 $20 $30 $40 If we assume that any roommate watching the movie does not affect the others' ability to do so, the social benefit of the movie is because the movie is a with no $40; private good; excludability $40; private good; rivalry in consumption O$100; public good; rivalry in consumption $100; common resource; excludabilityExplanation / Answer
Willingness to pay of a person is the dollar value he is willing to pay for availing any benefit, and the persons willingness to pay refers to his social benefit. Total Social Benefit is the sum of all the persons willingness to pay.
Thus, Total Social Benefit is (10+20+30+40) = 100.
It is said that any roommate watching the movie does not affect others ability to do so. Thus there is no rivalry in consumption and since the room belongs to all the four persons no one can be excluded from watching the film. It means there is no excludability and it is a public good.
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