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microbook_3e-page85 - paperwork Mayors A and B face the...

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paperwork beat walks high level of justice low level of justice high level of order low level of order indifference curve of Mayor A indifference curve of Mayor B police budget constraint Mayors A and B face the same police budget constraint, but they have different preferences (as illustrated by the different positions of their indifference curves). Mayor A is willing to tolerate a higher level of lawlessness in his city, so that his police force can prosecute more criminals. Mayor B prefers to prosecute fewer criminals, so that his police force can maintain a higher level of order. A larger police force would be helpful, but what we really need is police who respond quickly to disorderly behavior in our neighborhoods. What we need is for the mayor to change his preferences. If the mayor accepted some limited drug-trafficking in a designated area far from all residential neighborhoods, but also vowed to swiftly arrest and prosecute anyone who buys, sells or uses illegal
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