Refer to the Information Provided in Figure 16

question 94

Multiple Choice

Refer to the information provided in Figure 16.5 below to answer the questions that follow.
Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel. Figure 16.5
-Refer to Figure 16.5. Suppose the government assigns property rights to the airlines. No negotiations occur between the parties. The marginal damage cost associated with the resulting level of air travel is ________.

• A) $25
• B) $120
• C) $265
• D) $385

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Definitions:

HRM Adaptation

The process by which human resource management practices are tailored to fit the changing needs and objectives of an organization.

Technology Impact

The effect that technological advancements have on businesses, economies, and societies, including changes in efficiency, communication, and innovation.

Countertrend

A countertrend is a market movement that opposes the general direction of the market or current trends, often temporary in nature.

Environmental Scanning

A process used by organizations to monitor, analyze, and evaluate their external environment to identify opportunities and threats.