Optimal price reflects this subjective value secondly

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optimal price reflects this subjective value. Secondly, there may be a social cost to converting a private good to a public where the government cannot exclude users of it who do not pay their share of the cost. Thirdly, to the point that the “monopoly gain” should be offset – this is explained by the single buyer (the government) use that creates his advantage – not the private seller.
10. (Question 5.41) Types of expropriation. Compare the efficiency of the following two methods of amending the just-compensation constraint a. define just compensation to be fair market value plus 20%
b. allow private property owners to make their own assessments of the value of their property. Property owners agree to pay property taxes on that self-assessed value. If the government ever takes the property, it agrees to pay the self- assessed property as just compensation
11. (Question 5.44) Public Property Insurance. The federal Government provides disaster insurance that helps people to build vacation homes in places subject to flooding, such as sand dunes. Assume the government wants to protect the environment by preventing construction of homes on a specific sand dune near the ocean. If the government takes private property on the sand dune, either by
condemning it or by imposing regulations that forbid any construction, should compensation include or exclude the increase in the value of the land caused by government flood insurance? What does insurance do to those houses?
A new government comes in decides they want to buy the house, should they take into account the value of the insurance created by the previous insurance plan?

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