Without intervention, the private market would lead to an (efficient allocation, over-provision, or under-provision) of NPR. The cost (supply) of each "unit" of NPR (National Public Radio) is P=9. Derek's valuation for each unit of NPR (demand) is given by $ P_D = 20 - 2Q $, and Kim's valuation is given by $ P_K = 10 - Q $.The social valuation of NPR is $ P_S = $ [blank] $ \times $ [blank] $ Q $.The socially optimal amount of NPR is [blank] units.Without intervention, the private market would lead to an [blank] of NPR.Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR.The total demand function is $ Q_T = $ [blank] $ \times $ [blank] $ P $.The appropriate subsidy is $[blank] (include 2 decimals) per unit of NPR.

MC of NPR = 9 Derek's Valuation : Pd = 20 - 2Qd Qd = ( 20 - Pd)/2 Kim's Valuation : Pk = 10 - Qk…

The cost (supply) of each "unit" of NPR (National Public Radio) is P=9, Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pk=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an • of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Q= P.

The cost (supply) of each "unit" of NPR (National Public Radio) is P=9, Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pk=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an • of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Q= P.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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