Text Completion- The Hold-Out Problem

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Text Completion- The Hold-Out Problem

    The "hold-out problem” crops up whenever a single buyer has to negotiate in sequence with many sellers for the _________plots of land it needs for, say, a flyover or a factory. Even where sellers are________, the costs of bargaining with them in series can kill a project.

    1. continuous, naive
    2. separate, crafty
    3. abutting, astute
    4. contiguous, less shrewd

 

  • Correct Answer
    Choice (D)

Detailed Solution

Blank (1): This question hinges on the subtle difference between continuous and contiguous. It wouldn't make sense to say continuous plots of land. That would imply the plots of land are without interruption. This makes sense for time, but not for 'plots' of land which must necessarily have boundaries.

Still, separate is less appropriate because we get the idea that the purchaser needs plots of land in sequence - this makes contiguous the better option.

Abutting, meaning adjoining, is also a good possibility.

Blank (2) : The word "even" gives us a clue as to what is appropriate for this blank. Naïve or less shrewd are the only possibilities here.

So the correct choice here is option D. contiguous, less shrewd

Correct Answer: D



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