An Airport Is Located Next to a Housing Development

question 5

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 22X - X ² and profits of the developer are 26Y - Y ² - 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.

• A)H₁ = H₂ = 10.
• B)H₁ = 10 and H₂ = 13.
• C)H₁ = 13 and H₂ = 10.
• D)H₁ = 12 and H₂ = 12.
• E)H₁ = 12 and H₂ = 16.

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Definitions:

Confederate

An individual in a study who is secretly working with the researchers, often used in psychological experiments to manipulate social interactions without the other participants’ knowledge.

Authority Figure

An individual who holds power or influence over others, often in a hierarchical organization or society.

Stanley Milgram

A psychologist best known for his landmark experiment on obedience to authority figures, conducted in the 1960s, demonstrating how ordinary people can commit unthinkable actions under pressure.

Obedience Study

A series of experiments that demonstrate the extent to which individuals will follow orders from an authority figure, even when such orders result in harm to others, most famously illustrated by Stanley Milgram's experiments.