Multiple Choice
An airport is located next to a housing development.Where X is the number of planes that land per day and Y is the number of houses in the housing development, profits of the airport are 28X - X2 and profits of the developer are 20Y - Y2 - XY.Let H1 be the number of houses built if a single profit-maximizing company owns the airport and the housing development.Let H2 be the number of houses built if the airport and the housing development are operated independently and the airport has to pay the developer the total "damages" XY done by the planes to the profits of the developer.
A) H1 = H2 = 4.
B) H1 = 4 and H2 = 10.
C) H1 = 10 and H2 = 4.
D) H1 = 6 and H2 = 9.
E) H1 = 9 and H2 = 13.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: The 130 campers at Bear Creek Campground
Q24: If preferences are quasilinear, then the delineation
Q25: Suppose that in Horsehead, Massachusetts, the cost
Q26: Two stores are located side by side.They
Q27: If there are negative externalities in production
Q29: Firm 1 produces output x with a
Q30: An apiary is located next to an
Q31: If your consumption of toothpaste produces positive
Q32: The "tragedy of the commons" refers to
Q33: Millie Bush has written a best-seller.Revenues net