2. Public Television There are three groups in a community. Their willingness to pay for each hour of public television consumption are given, respectively by: WTP1 =$200Q WTP2 =$240Q WTP3 =$3202Q Suppose public television is a public good that can be produced at a constant marginal cost of $200 per hour. a. In a carefully labeled diagram, please illustrate the demand curves for each group, recalling that we can graph WTP along the vertical axis and quantity consumed along the horizontal axis. b. Drawing on what we know from this week about how to add up demand for a public good, please draw the market demand curve for public television based on these three group demand curves. c. Draw the marginal cost curve based on the above information and indicate the optimal hours of public television labeling the quantity QPub and price PPub and the equilibrium point EPub. d. Please draw the market demand for public television if were a private good that a competitive market provided and indicate what the equilibrium quantity (QPriv), price (PPriv) and point ( EPriv)) would be. e. Comparing your answers for c and d, please comment on the difference in equilibrium quantities and what this says about provision of public vs. private goods, drawing on our discussion of this topic in lecture and the text. 2. Public Television There are three groups in a community. Their willingness to pay for each hour of public television consumption are given, respectively by: WTP1 =$200Q WTP2 =$240Q WTP3 =$3202Q Suppose public television is a public good that can be produced at a constant marginal cost of $200 per hour. a. In a carefully labeled diagram, please illustrate the demand curves for each group, recalling that we can graph WTP along the vertical axis and quantity consumed along the horizontal axis. b. Drawing on what we know from this week about how to add up demand for a public good, please draw the market demand curve for public television based on these three group demand curves. c. Draw the marginal cost curve based on the above information and indicate the optimal hours of public television labeling the quantity QPub and price PPub and the equilibrium point EPub. d. Please draw the market demand for public television if were a private good that a competitive market provided and indicate what the equilibrium quantity (QPriv), price (PPriv) and point ( EPriv)) would be. e. Comparing your answers for c and d, please comment on the difference in equilibrium quantities and what this says about provision of public vs. private goods, drawing on our discussion of this topic in lecture and the text