The average cost of landscaping services for members of a condominium community is $350 per week. Assume
Question:
a. How many gardeners would be hired if their services were sold in a market to individual buyers at a price of $350 per week? Explain why the market arrangement is inefficient.
b. Assume that the efficient number of gardeners is three per week. What is the political equilibrium under majority rule if each voter is assigned a tax share of $50 per gardener per week? Does the political equilibrium under majority rule differ from the Lindahl equilibrium?
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Related Book For
Public Finance A Contemporary Application of Theory to Policy
ISBN: 978-1285173955
11th edition
Authors: David N Hyman
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