Government's use of eminent domain is a solution to
A) the problem of negative externalities.
B) potential monopolization of a market.
C) the holdout problem.
D) the free-rider problem.

Question

Quizplus · Accepted Answer

The holdout problem occurs when one or more property owners refuse to sell their land or property at a reasonable price during the assembly of land for a large project, such as a highway or railway. Eminent domain allows the government to compulsorily acquire this land for public use, thus overcoming the holdout problem by ensuring that large-scale projects necessary for public benefit can proceed.

Government's Use of Eminent Domain Is a Solution to