Problem
Condominium owners' marginal benefit for landscaping services are in the table below. Assume that marginal cost of landscaping is constant at $350 per gardener.
Marginal Benefits for Each Gardner
|
Voter
|
1
|
2
|
3
|
4
|
|
Mike
|
325
|
275
|
225
|
175
|
|
Jan
|
225
|
150
|
75
|
0
|
|
Franklin
|
75
|
50
|
25
|
0
|
|
Susan
|
75
|
50
|
25
|
0
|
|
Megan
|
50
|
25
|
0
|
0
|
a. If each voter is assigned a tax share of $50, what is the political equilibrium under majority rule?
b. Discuss why this equilibrium does not result in the efficient output of gardening services.
c. Describe what the Lindahl Equilibrium would be.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.