The private provision of radio and television may not achieve a socially efficient outcome because

Question

Quizplus · Accepted Answer

Private radio and television stations often choose programs based on their potential audience size rather than their value to the audience, which may not lead to a socially efficient outcome. This may result in the provision of low-quality or uninformative programs that do not meet the needs or preferences of the audience. Alternatively, government regulation could potentially improve the situation by ensuring that stations provide a wider range of programming options that are both informative and entertaining but the option is not given here.

The Private Provision of Radio and Television May Not Achieve