Las Vegas Sands Corporation is trying to acquire 50 acres of land to build a casino resort in Pennsylvania. There are 60 houses on the land the company needs
Explain how eminent domain could be beneficial in the process of acquiring this land in terms of transactions costs and the holdout problem.
Using eminent domain to acquire the land would likely reduce transactions costs and eliminate any holdout problem.
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Refer to the scenario above. What is the payoff to Firm B in equilibrium?
A) $2.6 million B) $0 C) $4 million D) $3 million
If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate, then the supply today will
A) the supply today will increase. B) the supply today will decrease. C) the demand today will decrease. D) the price today will fall.
Which of the following statements is true?
A. There was a great deal of stagflation in the 1930s. B. The inflation rate fell during the Eisenhower Administration, but rose during the Reagan years. C. Output in the United States fell by about one-third between 1929 and 1933. D. The Medicare and Medicaid programs were inaugurated during the New Deal.
Which of the following is TRUE of the activities of ticket scalpers?
A. These activities help reduce the quantities of excess tickets supplied for events in which ticket surpluses currently exist. B. Engaging in these activities enable scalpers to push the price above the market clearing level. C. Engaging in these activities enable scalpers to push the price below the market clearing level. D. These activities cannot generate profits for the scalpers unless ticket prices are currently below market clearing levels.