9) 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, %3D 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?

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9) There are three groups in a community. Their demand curves for public television in
hours of programming, T, are given respectively by
Wi = $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?
Transcribed Image Text:9) There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by Wi = $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?
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