2. A lone shepherd can graze 10 sheep per year in a meadow . Each additional shepherd who uses the meadow reduces the number of sheep that can be maintained by one per shepherd . If a person would rather stay home than graze fewer than four sheep (i.e., the opportunity cost of going to the meadow is four sheep), how many shepherds will lead their flocks to the meadow every year ? What are the net benefits to society of this outcome? What is the efficient number of shepherds at the meadow? Is the meadow a public good? 3. In Australia and Britain there is a national broadcaster . It is called Australian Broad casting Corporation (ABC ) in Australia and British Broadcasting Corporation (BBC ) in Britain . Both of them are autonomous public service broadcasters with the goal of providing independent news , cover topics of social benefits and foster multiculturalism The ABC is fully funded by the government. The BBC is funded principally by an annual television licence fee, charged to all British households , companies and organi - sations using any type of equipment to record and/ or receive live television broadcasts (the fee is set by the government). Both send a number of Free-to-air TV and ra- dio broadcasts in clear (unencrypted ) form , allowing any person with the appropriate receiving equipment to receive the signal and view or listen to the content without requiring a subscription Now a small country inhabited by 100 people has to decide whether or not to create a national broadcaster and how to finance it. The alternative could be a perfectly com - petitive private market. Let capital X be the number of media services (TV channels and radio stations) covered by the broadcaster(s), and small x be the number of media services consumed by a single individual. All individuals in the country have the same marginal benefit from media services , equal to 10 - r. The marginal cost of providing an additional media service is constant and equal to 200 per media service . This can be interpreted as the marginal cost for the national broadcaster , or the market supply in the case of a private market. Assume that advertising on national broadcasters is not allowed by constitution. Answer the following: (i) Is Free-to-Air signal a public good? (ii) If we were to consider the Free-to-Air signal by a national broadcaster as public good, what would be the socially optimal number of services? Illustrate your