Anyone with a radio receiver can listen to public radio, which is funded largely by donations.
a. Is public radio excludable or nonexcludable? Is it rival in consumption or nonrival? What type of good is it?
b. Should the government support public radio? Explain your reasoning.
c. In order to finance itself, public radio decides to transmit only to satellite radios, for which users have to pay a fee. What type of good is public radio then? Will the quantity of radio listening be efficient? Why or why not?