-If the Hamilton Method Is Used to Apportion Legislative Seats

question 56

Multiple Choice

$\begin{array} { l | c c c c c } \text { State } & \mathrm { a } & \mathrm { b } & \mathrm { c } & \mathrm { d } & \mathrm { e } \\\hline \text { Population } & 131 & 140 & 304 & 178 & 197\end{array}$
-If the Hamilton Method is used to apportion legislative seats to three states with the populations given in the table, then the Alabama Paradox occurs when the number of seats being apportioned Increases from 150 to 151. $\begin{array} { l | c c c } \text { State } & \text { a } & \text { b } & c \\\hline \text { Population } & 740 & 6730 & 7530\end{array}$
In which state does the paradox show up?

• A)a
• B)c
• C)b

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Definitions:

Deadweight Loss

Deadweight loss occurs when an economy's total welfare is not maximized, resulting from inefficiencies such as taxes or subsidies that distort market equilibrium.

Pure-monopoly Market

A market structure where a single firm has the exclusive control over the supply of a product or service, with no close substitutes available, allowing for price setting.

X-inefficiency

The difference between actual and minimum possible input costs, often occurring due to a lack of competitive pressure and inefficiencies in production.

Minimum Possible Average Cost

The lowest average cost at which a firm can produce its output in the long run, given its technology and factor prices.