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Advertisement-free radio broadcasting is a non-excludable public good. The following table shows the private marginal benefits of each of 10,000 residents in a rural county
Advertisement-free radio broadcasting is a non-excludable public good. The following table shows the private marginal benefits of each of 10,000 residents in a rural county as well as the social marginal benefits from hours of ad-free broadcasting per day.
Hours per day | Private MB | Social MB |
6 | $7 | $70,000 |
8 | $6 | $60,000 |
10 | $5 | $50,000 |
12 | $4 | $40,000 |
Each hour of broadcasting costs $50,000. The market outcome would be ________ hours of ad-free broadcasting each day. The efficient quantity is ______ hours of ad-free broadcasting each day.
Select one:
A.0; 0
B.0; 10
C.6; 12
D.10; 0
E.10; 10
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