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Business, 20.02.2020 21:48 aashya16

The Parliament, the legislature of the fictional country of Verben, is considering legislation that will generate benefits of $30 million and costs of $36 million. For perspective, Verben's population is 40 million. Passing the legislation is , and if everyone in Verben shared equally in both its benefits and its costs, the Parliament will vote 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 Parliament 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 Parliament is responsive to lobbying. The likely amount spent on lobbying against the legislation is , in which case the Parliament will likely vote the legislation.

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