A magician recorded his magic show and broadcast it  freely in internet. How would you classify the show with  reference to rivalrous and excludability?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter16: Government Regulation
Section: Chapter Questions
Problem 9E
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(a) A magician recorded his magic show and broadcast it  freely in internet. How would you classify the show with  reference to rivalrous and excludability?

(b) There are two online magic show enthusiasts, A and B in  the market.  Their demand functions are QA = 5 – 0.25PA and  QB = 15 – 0.5PB respectively.  Explain the method to obtain  the market demand function for magic show which are freely  available online.

(c) Draw the marginal social benefit curve for online magic show.

(d) If a magician produces magic show and broadcast online  to both individuals at a constant marginal cost of $20, what  is the market equilibrium quantity and price of online magic  shows?

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