A Dentist Shares an Office Building with a Radio Station

question 102

Multiple Choice

A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the radio broadcast, causing the radio station to lose $10,000 in profits. The radio station could put up a shield at a cost of $30,000; the dentist could buy a new drill that causes less interference for $6,000. Either would restore the radio station's lost profits. What is the economically efficient outcome?

• A)The radio station puts up a shield, which it pays for.
• B)The radio station puts up a shield, which the dentist pays for.
• C)Neither the radio station nor the dentist purchase additional equipment.
• D)The dentist gets a new drill; it does not matter who pays for it.

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Definitions:

Chronic Obstructive Pulmonary Disease

A group of lung conditions that cause breathing difficulties and airflow obstruction, including emphysema and chronic bronchitis.

Respiratory System

The system of organs responsible for taking in oxygen and expelling carbon dioxide in living organisms.

Thrombophlebitis

Inflammation of a vein accompanied by the formation of blood clots within the vein.

Cardiovascular System

The body system comprising the heart and blood vessels, responsible for circulating blood and transporting nutrients and oxygen throughout the body.