A Chinese Restaurant Wants to Expand Its Business by Acquiring

Multiple Choice

A Chinese restaurant wants to expand its business by acquiring a neighboring dry cleaner. 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.