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:

Blockage

The obstruction of passage through something, such as a pipe or a blood vessel.

Vital Capacity

Maximum amount of air moved in and out of lungs with forced inhalation and exhalation.

Forced Inhalation

An involuntary or voluntary act of taking air into the lungs through the use of respiratory muscles more forcefully than in normal breathing.

External Intercostal Muscles

Muscles located between the ribs that expand the chest cavity for inhalation by elevating the ribs.