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Exhibit 14-3 Impact of Flights on House Value
Each Time

Question 64

Multiple Choice

Exhibit 14-3 Impact of flights on house value
Each time Orville flies over Wilber's house, the noise reduces the value of Wilbur's house. The table shows the profits to Orville of each flight, and the value of Wilbur's house.  Number  of flights  Total  profits  Marginal  profits  Value of Wilbur’s  house 1$10,000$10,000$100,000218,0008,00095,000324,0006,00090,000428,0004,00085,000530,0002,00080,000\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number } \\\text { of flights }\end{array} & \begin{array} { c } \text { Total } \\\text { profits }\end{array} & \begin{array} { c } \text { Marginal } \\\text { profits }\end{array} & \begin{array} { c } \text { Value of Wilbur's } \\\text { house }\end{array} \\\hline 1 & \$ 10,000 & \$ 10,000 & \$ 100,000 \\2 & 18,000 & 8,000 & 95,000 \\3 & 24,000 & 6,000 & 90,000 \\4 & 28,000 & 4,000 & 85,000 \\5 & 30,000 & 2,000 & 80,000 \\\hline\end{array}
-As shown in Exhibit 14-3, if Orville has the property right to fly over Wilbur's house, but Wilbur is allowed to negotiate with Orville on the number of flights, what will be the number of flights?


A) 2.
B) 3.
C) 4.
D) 5.

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