Answer to Question #276757 in Microeconomics for Anna

Question

On any given day there are 15,000 people who listen to Minnesota Public Radio (MPR). The per-person yearly benefit is $150. Twice a year MPR holds a fund raising drive requesting listeners contribute to keep their programming on the air.

What is the per-person incentive to make a contribution?

A. $0 

B. $300

C. $30,000

D. $15,000,000

Answer 1

Solution:

The correct answer is B. $300.

 

This is because every person yearly benefit is $150 and since the contribution is twice per year, every individual will have an incentive of contributing the benefit received twice for the year, making it $300 worth of contribution.