Suppose it is proposed to create a single local jurisdiction and government for your entire metropolitan area or region, to be called Metroland. It would replace all cities and/or towns that currently provide basic local services (such as public safety, streets, and recreation services).

(a) Make the economic case for this consolidation into a metropolitan-ar ea govern-ment. (There are at least three potentially favorable economic reasons.)

(b) Now suppose you were hired as an economic consultant to advise about this change, and your research uncovers four facts: (i) currently, there is a big difference in per capita spending among the municipalities to be consolidated, from $2,000 at the top to $500; (ii) the variance in per capita income for people living in the area is relatively large; (iii) there is a relatively small variance in per capita income within each of the municipalities; and (iv) currently, many of these municipalities contract with the county (or state) government to have some services (such as jails, emergency dispatch, and parks) provided. Do these facts support or argue against the proposed consolidation? Explain your reasoning for each factor.