A Homeowner Wants to Purchase the Property on Both Sides

Multiple Choice

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.