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. 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? b. How much public television would a competitive private market provide?

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. 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? b. How much public television would a competitive private market provide?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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