National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by PD=10–Q, and Kim's valuation is given by PK=4–0.25Q. The total social valuation (demand) of NPR is PS=Answer-AnswerQ. The socially optimal amount of NPR is Answer units.  Without intervention, the private market would lead to an Answer of NPR.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by PD=10–Q, and Kim's valuation is given by PK=4–0.25Q.

The total social valuation (demand) of NPR is PS=Answer-AnswerQ.
The socially optimal amount of NPR is Answer units. 
Without intervention, the private market would lead to an Answer of NPR.

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