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Refer to the figure above. Suppose the government assigns property rights to the

ID: 1097274 • Letter: R

Question

Refer to the figure above. Suppose the government assigns property rights to the airlines. No negotiations occur between the parties. The resulting level of air travel is ________.

A) 0 units
B) 100 units
C) 120 units
D) Indeterminate from the given information.

10.

Refer to the figure above. 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

11.

Refer to the figure above. Suppose the government assigns property rights to the airlines, then the airlines and the residents engage in negotiations. The resulting efficient level of air travel is ________.

A) 0 units
B) 100 units
C) 120 units
D) Indeterminate from the given information.

12.

Refer to the figure above. The marginal damage cost associated with the efficient level of air travel is ________.

A) $0
B) $100
C) $225
D) $265

13.

Refer to the figure above. The marginal damage cost ________ as the quantity of air travel increases.

A) increases
B) decreases
C) remains constant
D) becomes negative

14.

Refer to the figure above. Suppose the government assigns property rights to the nearby residents affected by the airlines. No negotiations occur between the parties. The resulting level of air travel is ________.

A) 0 units
B) 100 units
C) 120 units
D) Indeterminate from the given information.

Explanation / Answer

i choose that 9) C 10) D 11) B 12) C 13)A 14)D