Advertisement-free radio broadcasting is a non-excludable public good.The following table shows the private marginal benefits of each of 10,000 residents in a rural county as well as the social marginal benefits from hours of ad-free broadcasting per day.Hours per dayPrivate MBSocial MB6$7$70,0008$6$60,00010$5$50,00012$4$40,000Each hour of broadcasting costs $50,000.The market outcome would be ________ hours of ad-free broadcasting each day. The efficient quantity is ______ hours of ad-free broadcasting each day.Select one:A.0; 0B.0; 10C.6; 12D.10; 0E.10; 10

Perfect competition refers to the condition of the market where complete information is available…

Answered: Advertisement-free radio broadcasting…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Advertisement-free radio broadcasting is a non-excludable public good.

The following table shows the private marginal benefits of each of 10,000 residents in a rural county as well as the social marginal benefits from hours of ad-free broadcasting per day.

Hours per day	Private MB	Social MB
6	$7	$70,000
8	$6	$60,000
10	$5	$50,000
12	$4	$40,000

Each hour of broadcasting costs $50,000.

The market outcome would be ________ hours of ad-free broadcasting each day. The efficient quantity is ______ hours of ad-free broadcasting each day.

Select one:

0; 0

0; 10

6; 12

10; 0

10; 10

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