10) There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by W₁ = $200-T, W₂=$240-27, W3 = $320 - 27. Suppose public television is a pure public good that can be produced at a constant marginal cost of $200 per hour. a. What is the efficient number of hours of public television? Willingness to Pay Hours Vertical Group 1 (W₁) (7) Sum 100 100 120 260 106 94 108 230 112 88 96 200 118 82 4 84 170 b. How much public television would a competitive private market provide? Group 2 Group 3 (W₂) (W3) 40 28 16

10) There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by W₁ = $200-T, W₂=$240-27, W3 = $320 - 27. Suppose public television is a pure public good that can be produced at a constant marginal cost of $200 per hour. a. What is the efficient number of hours of public television? Willingness to Pay Hours Vertical Group 1 (W₁) (7) Sum 100 100 120 260 106 94 108 230 112 88 96 200 118 82 4 84 170 b. How much public television would a competitive private market provide? Group 2 Group 3 (W₂) (W3) 40 28 16

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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There are three groups in a community. Their demand curves for public television in hours of programming, T are given respectively by W1=$200-T W2=$240-2T W3=$320-2T supppse public television is a pure public good that can be produced at a constant marginal cost of $200 per hour.
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