Question
The average cost of landscaping services for members of a condominium community is RM350 per week. Assume that the quantity of landscaping services is perfectly
The average cost of landscaping services for members of a condominium community is RM350 per week. Assume that the quantity of landscaping services is perfectly correlated with the number of gardens per week. Suppose the community consists of seven residents, each with the identical marginal benefit curve for landscaping services. The marginal benefit of the first gardener is RM100 per resident.
b)Assume that the efficient number of gardeners is three per week. What is the political equilibrium under majority rule if each voter is assigned a tax share of RM50 per gardener per week? Does the political equilibrium under majority rule differ from the Lindahl Equilibrium?
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