When airplanes take off and land at Logan Airport, the residents of East Boston complain about the noise. The same planes make the same noise during the trip to Boston fromParis, but on this run, over the Atlantic
A) the sound is muffled at high altitudes, creating less market failure
B) market failure does not apply because it is an international flight
C) there are no externalities because there are no third parties
D) the positive externalities of the flight outweigh the negative externalities of the noise
E) free riders are more numerous so that market failure is eliminated

Question

Quizplus · Accepted Answer

The key difference is that over the Atlantic, there are no residents or third parties to be affected by the noise, thus no externalities are created.

When Airplanes Take Off and Land at Logan Airport, the Residents