Special-interest group A receives a 1/1,000 slice of the economic pie (Real GDP). The groupcan lobby for

Question:

Special-interest group A receives a 1/1,000 slice of the economic pie (Real GDP). The groupcan lobby for one of two different policies, and in each case the lobbying costs are $100. The first policy will increase the size of the economic pie by $10 million. The second policy will transfer $10,000 from others to the special- interest group. How many times more than the $10,000 (in the second policy) does the economic pie have to grow (in the first policy) before the special-interest group is indifferent between the two policies?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

Question Posted: