A Professional Hockey Franchise Is Trying to Assemble a Parcel

Multiple Choice

A professional hockey franchise is trying to assemble a parcel of land to build an arena. There is one vacant warehouse on the land the franchise needs. In this case,

A) eminent domain will reduce transactions costs and make a pie-increasing arena possible.
B) eminent domain will reduce the likelihood of holdouts and make a pie-increasing arena possible.
C) eminent domain is not called for as the land can probably be acquired more efficiently through bargaining.
D) Both A and B are correct.