c. Next, suppose NYC cannot easily identify how much consumer surplus any individual gets and therefore cannot
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c. Next, suppose NYC cannot easily identify how much consumer surplus any individual gets and therefore cannot match people to apartments as in (b). So instead, the mayor develops a
“pay-to-play” system under which only those who pay monthly bribes to the city will get to
“play” in a rent-controlled apartment. Assuming the mayor sets the required bribe at just the right level to get all apartments rented out, illustrate the size of the monthly bribe.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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