There are two types of citizens in Pulmonia. The first type has an inelastic demand for public broadcasting at Q = 8 hours per day; however, they are willing to pay only up to $30 per hour for each hour up to Q = 8. The second type demands public broadcasting according to P = 60 - 3Q.
a) Suppose the marginal cost of public broadcasting is MC = 15. What is the economically efficient level of public broadcasting? Hint: it will help if you draw a careful sketch of the demand curve of each type of citizen.
b) Repeat part (a) for MC = 45.