There are three groups in Marietta. Their demand curves for public television in hours of programming, T, are given respectively by:
W1 = $200 - T
W2 = $240 - T
W3 = $320 - 2T.
Suppose public television is a pure public good that can be produced at a constant marginal cost of $200 per hour.
a) What is the efficient number of hours of public television? Explain how you determined the answer.
b) How much public television would a competitive private market provide? Explain how you determined the answer.