Assume that each day ten thousand children watch Sesame Street on public television and that the educational benefits of watching Sesame Street generate private benefits of $100 per child per year and a positive externality of $50 per child per year.No products are advertised on Sesame Street but once a year the stations hold a pledge drive.During pledge drives viewers are asked to make voluntary contributions to the public station in order to keep the programming viable.
The broadcast of Sesame Street yields total private benefits of ____ and total social benefits of _____.
A) $10,000;$15,000
B) $1,000,000;$1,500,000
C) $100,000;$150,000
D) $1,000,000;$500,000
Correct Answer:
Verified
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