Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 11

A tanning salon wants to expand its business by acquiring a neighboring tavern. In this case, ______.
A) Eminent domain reduces transactions costs and makes a pie-increasing tanning salon possible
B) Eminent domain reduces the likelihood of holdouts and makes a pie-increasing tanning salon possible
C) Both of the above
D) Eminent domain is not called for