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A city has three neighborhoods with three demand curves for public radio in hours of broadcasting, B, are given by the following: N1 = $
A city has three neighborhoods with three demand curves for public radio in hours of broadcasting, B, are given by the following:
N1 = $ 100 B
N2 = $ 120 2B
N3 = $ 160 2B
Public radio is a public good that can be produced at constant marginal cost of $100 per hour.
a). Calculate the efficient number of hours of public radio broadcasting.
b). How many hours of public radio broadcasting would a competitive market provide?
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