There are three groups in a community their demand curves


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?

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Business Economics: There are three groups in a community their demand curves
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