Suppose That the Cost Function of the Honey Farm Is

question 13

Multiple Choice

suppose that the cost function of the honey farm is C_H(H, A) = H ²/100 - 1A and the cost function of the apple orchard is C_A(H, A) = A²/100, where H and A are the number of units of honey and apples produced respectively.The price of honey is $8 and the price of apples is $6 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 profit-maximizing single owner.

• A)A₁ = 175 and A₂ = 300.
• B)A₁ = 150 and A₂ = 300.
• C)A₁ = 300 and A₂ = 350.
• D)A₁ = A₂ = 300.
• E)A₁ = 400 and A₂ = 300.

---

Definitions:

Government Agencies

Organizations established by a government to perform specific functions or services according to legal mandates.

Laws

Regulations and rules established by governments or other authorities to govern behavior and actions in a society.

Competitive Advantage

A situation or factor that gives a business an advantageous or dominant position over its rivals in the industry.

Monopolistic Market Position

A competitive standing where a single company or entity dominates the supply of a particular product or service in a market.