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An Airport Is Located Next to a Housing Development

question 10

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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 22X - X2 and profits of the developer are 32Y - 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 developer's profits.


Definitions:

Thoracic Compliance

The ability of the thoracic cavity and lungs to stretch and expand during inhalation, influencing the ease of breathing.

Alveolar Surface

The inner surface area of the alveoli, tiny sacs in the lungs where gas exchange between the air and blood takes place.

Type I Pneumocytes

Thin cells that line the alveoli of the lungs and are involved in the process of gas exchange between the lungs and the blood.

Type II Pneumocytes

are specialized cells in the alveoli of the lungs, responsible for the production and secretion of pulmonary surfactant to decrease surface tension.

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