When attempting to build a shopping center the size of several ...

[pepyto]

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]

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.