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

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. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number } \\\text { of flights }\end{array} & \begin{array} { c } \text { Total } \\\text { profits }\end{array} & \begin{array} { c } \text { Marginal } \\\text { profits }\end{array} & \begin{array} { c } \text { Value of Wilbur's } \\\text { house }\end{array} \\\hline 1 & \$ 10,000 & \$ 10,000 & \$ 100,000 \\2 & 18,000 & 8,000 & 95,000 \\3 & 24,000 & 6,000 & 90,000 \\4 & 28,000 & 4,000 & 85,000 \\5 & 30,000 & 2,000 & 80,000 \\\hline\end{array}$$
-As shown in Exhibit 14-3, at the socially efficient number of flights, what will be the market value of Orville's house?

A) $100,000.
B) $95,000.
C) $90,000.
D) $85,000.