revenue of S40 (there is no information that would lead us to believe that the beekeeper has any market power)and a marginal cost of 10+50 40=10+5Q,0rQ=6. Is this the economically efficient number of hives? If there are too few bees to pollinate the orchard,the farmer must pay $1 per acre for artificial pollination.Thus,the farmer would be willing topay up to s10 to the beekeeper to maintain each additional hive.So.the marginal social benefit,MSB,of each additional hive is $50.which is greater than the marginal private benefit of $40.Assuming that the private marginal ost is equal to the social margin cost,we set MSB=MC to determine the efficient number of hives: 50=10+5Q,0rQ=8. Therefore,the beekeeper's private choice of =6is not the socially efficient number of hives. What changes would lead to the more efficient operation? The most radical change that would lead to more efficient operations would be the merger of the farmer's business with the beekeeper's business.This merger woukd internalie the positive externality of be pollination Short of a merger,the frmer and beekeeper houkd enterintoa contractfor pollnation services. 9.There are three groups in a community.Their demand curves for public television in hours of programming,T,are given respectively by W1=$200T, Wg=$240-T, Wa=$320-2T Suppose public television is a pure publie good that can be produced at a constant marginal cost of $200 per hour. What is the efficient number of hours of public television? The efficient number of hours is the amount such that the sum of the marginal benefits is equal t marginal co ven the demand curves representing the marginal benefits to each individual,we sum these demand curves vertically to determine the sum of all marginal benefits. From the table below one can see that MSB=MC at T=140 hours of programming。 Willingness to Payrevenue of $40 (there is no information that would lead us to believe that the beekeeper has any market power) and a marginal cost of 10 + 5Q: 40 = 10 + 5Q, or Q = 6. b. Is this the economically efficient number of hives? If there are too few bees to pollinate the orchard, the farmer must pay $10 per acre for artificial pollination. Thus, the farmer would be willing to pay up to $10 to the beekeeper to maintain each additional hive. So, the marginal social benefit, MSB, of each additional hive is $50, which is greater than the marginal private benefit of $40. Assuming that the private marginal cost is equal to the social marginal cost, we set MSB = MC to determine the efficient number of hives: 50 = 10 + 5Q, or Q = 8. Therefore, the beekeeper’s private choice of Q = 6 is not the socially efficient number of hives. c. What changes would lead to the more efficient operation? The most radical change that would lead to more efficient operations would be the merger of the farmer’s business with the beekeeper’s business. This merger would internalize the positive externality of bee pollination. Short of a merger, the farmer and beekeeper should enter into a contract for pollination services. 9. There are three groups in a community. 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? The efficient number of hours is the amount such that the sum of the marginal benefits is equal to marginal cost. Given the demand curves representing the marginal benefits to each individual, we sum these demand curves vertically to determine the sum of all marginal benefits. From the table below one can see that MSB = MC at T = 140 hours of programming. Willingness to Pay