When attempting to build a shopping center the size of several city blocks a developer anticipates a holdout problem in his preferred location. Which of the following is not an option the developer has available to get around the holdout problem?
a. Substituting to another location by building the shopping center on former farmland on the urban fringe.
b. Lobbying the local government to use eminent domain on potential holdouts.
c. Attempting to purchase the properties through dummy corporations to hide his true intent.
d. Using contracts that increase everyone's sale price by a small percentage if everyone sells.
d
You might also like to view...
When the government uses a cap-and-trade approach in dealing with pollution, it
A) uses taxes in order to internalize the externalities caused by the pollution. B) imposes quantitative limits on the amount of pollution firms are allowed to generate. C) uses subsidies to encourage firms to use new technology that reduces pollution. D) distributes information to consumers and producers on how to reduce pollution.
What is the meaning of the term "marginal rate of substitution"?
What will be an ideal response?
The equilibrium level of regulation is _____
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation c. determined where the marginal political benefits to the special interests are equal to zero d. determined where the marginal benefits from the regulation are equal to zero
Marginal revenue
A. measures the slope of the total revenue curve. B. is always greater than zero. C. is the change in total revenue when output increases by one unit. D. both a and c E. all of the above