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Business, 06.08.2021 03:20 absmentalbreakdown

The Senate, the legislature of the fictional country of Romange, is considering legislation that will generate benefits of $20 million and costs of $26 million. For perspective, Romange's population is 40 million. Passing the legislation isefficient , and if everyone in Romange shared equally in both its benefits and its costs, the Senate will votefor the legislation. If the benefits of the legislation are concentrated among a few people instead of widespread among the population, those people will be willing to spend up to lobbying the Senate for the legislation. (Note: Assume that the costs are widespread; therefore, you can ignore them in the calculations of the few who experience the benefits.) The less widely spread are the costs of the legislation, the is the likelihood of lobbying against the legislation by those who will incur its costs. Suppose that, as before, the benefits of the legislation are concentrated among a small group, the costs are very widespread, and the Senate is responsive to lobbying. The likely amount spent on lobbying against the legislation is , in which case the Senate will likely vote the legislation.

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The Senate, the legislature of the fictional country of Romange, is considering legislation that wil...

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