A homeowner wants to purchase the property on both sides of his house so he can expand the size of his home and increase property values throughout his neighborhood. In this case,
A) eminent domain would likely be used to reduce transactions costs.
B) eminent domain would likely be used to reduce the holdout problem.
C) eminent domain would not likely be used.
D) eminent domain would likely be used because this transaction would increase cooperative surplus.
C
You might also like to view...
If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed
A) does not diminish B) diminishes C) increases D) More information is needed to answer the question.
Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In this monopolistic market, economic profit would encourage ________, which decreases the ________ for each firm's meals
A) entry; demand B) entry; supply C) exit; demand D) exit; supply
A demand curve with constant slope over all quantity values can have a continuously changing price elasticity of demand.
Answer the following statement true (T) or false (F)
When, because of hiring and firing costs, firms retain workers in a recession that they would otherwise lay off, there is said to be
A. involuntary unemployment. B. labor hoarding. C. voluntary unemployment. D. a decline in capacity utilization.