An Apiary Is Located Next to an Apple Orchard

question 36

Multiple Choice

An apiary is located next to an apple orchard. The apiary produces honey and the apple orchard produces apples. The cost function of the apiary is C_H(H, A) = - 2A and the cost function of the apple orchard is C_A(H, A) = , where H and A are the number of units of honey and apples produced respectively. The price of honey is $1 and the price of apples is $3 per unit. Let A₁ be the output of apples if the firms operate independently, and let A₂ be the output of apples if the firms are operated by a single owner so as to maximize total profit.

• A) A₁ = 75 and A₂ = 150.
• B) A₁ = A₂ = 150.
• C) A₁ = 125 and A₂ = 150.
• D) A₁ = 150 and A₂ = 250.
• E) A₁ = 50 and A₂ = 150.

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Definitions:

Data Visualization

The representation of data or information in graphical or pictorial format to make it easier to understand and analyze.

Conventional Charts

Traditional graphical representations of data, such as bar graphs, line charts, and pie charts, used to visualize information.

Line Charts

A type of chart that displays information as a series of data points connected by straight line segments, commonly used to visualize trends over time.

Vertical Axis

A line or scale along the side of a chart or graph that shows the value of something.