Instead of all residents having identical marginal benefit schedules, themarginal benefit per gardener varies for five residents
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Marginal Benefit for Each Gardener
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If each voter is assigned a tax share of $50, what is the political equilibrium under majority rule? Show that this equilibrium does not result in the efficient output of gardening services. Show how the Lindahl equilibrium will differ from the political equilibrium under majority rule.15
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The political equilibrium under majority rule is two gardeners This differs from the effi...View the full answer
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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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