Mudville has lousy weather, frequent tornadoes, poor drinking water, an incompetent local government, and (as everyone knows)

Question:

Mudville has lousy weather, frequent tornadoes, poor drinking water, an incompetent local government, and (as everyone knows) a baseball team that never wins. Pleasantville has wonderful weather, occasional showers of dollar bills, great drinking water, a superb local government, and its team wins all the time. People who live in Mudville and Pleasantville do all their work by telecommuting. Everyone has the same innate preferences about consumption and leisure, but people have different incomes. What is a necessary condition for the residents of Pleasantville with an income of $50,000 a year to be better off than residents of Mudville with the same income (there are some of each)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

City Economics

ISBN: 9780674019188

1st Edition

Authors: Brendan O'Flaherty, Brendan O&Flaherty

Question Posted: