The city of seattle limits each household to one can of


Problem

The city of Seattle limits each household to one can of free garbage collection per week. There are fees for any extra garbage collected from the curb. Suppose that a neighborhood group in Seattle organizes a group of families so that those who plan to go over their one-can garbage quota can find households that are under their quota and pay them to put out the extra trash. Does this change the efficiency of the policy?

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Microeconomics: The city of seattle limits each household to one can of
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