Author Question: When attempting to build a shopping center the size of several city blocks a developer anticipates a ... (Read 96 times)

pepyto

  • Hero Member
  • *****
  • Posts: 547
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.

Question 2

Suppose the following information is known about a market:
 
  1. Sellers will not sell at all below a price of 2.
  2. At a price of 10, any given seller will sell 10 units.
  3. There are 100 identical sellers in the market.
 
  Assuming a linear supply curve, use this information to derive the market supply curve.



Bsand8

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

d

Answer to Question 2

First, Q = 100q since all firms are identical. This gives two points: (p = 2, Q = 0 ) and
(p = 10, Q = 1000 ). From the first point, it is known that p = 2 + bQ. When Q = 1000, 10 = 2 + b(1000 ). Solving for b yields b = .008. Rearranging to solve for Q yields: Q = -250 + 125p or P= 2 + .008Q.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

For a complete list of videos, visit our video library