An Airport Is Located Next to a Housing Development

question 28

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 36X - X² and profits of the developer are 42Y - 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 = 18 and H₂ = 20.
• B) H₁ = 21 and H₂ = 16.
• C) H₁ = H₂ = 16.
• D) H₁ = 16 and H₂ = 21.
• E) H₁ = 20 and H₂ = 24.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, sex, or disability.

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, based on the gender(s) to which one is attracted.

Business Partner

An individual or organization that collaborates with another to run a business or project, sharing in the risks and rewards.

Entity

Any individual, company, organization, or structured group with a distinct legal existence.