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Which of the following is true about unitization agreements? They are easier to reach when each...

Which of the following is true about unitization agreements?

They are easier to reach when each firm has a lot of private information about the underlying field.

Smaller landowners are likely to join first.

Production shares are based on total output of the unit, not total output of each tract of land.

All of the above are true about unitization agreements.

All of the above statements are false.

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Answer #1

Answer option C All are correct about unitization aggrements.

In unitization aggrements

They are easier to reach when each firm has a lot of private information about the underlying field.

Production shares are based on total output of the unit, not total output of each tract of land.

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