An Airport Is Located Next to a Housing Development

question 24

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.

---

Definitions:

Emotional Disturbance

A term used in educational settings to describe students who exhibit emotional or behavioral responses so different from their peers that they adversely affect their educational performance.

Agoraphobia

An anxiety disorder characterized by intense fear of places where escape might be difficult, or help might not be available, often leading to avoidance of such places.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms such as chest pain, heart palpitations, and shortness of breath.

Avoidance Behaviors

Avoidance behaviors are actions taken to prevent or evade a perceived threat or discomfort, often seen in anxiety and other psychological conditions.