Suppose That the Cost Function of the Honey Farm Is

question 9

Multiple Choice

suppose that the cost function of the honey farm is C_H(H, A) = H ²/100 - 2A 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 $5 and the price of apples is $4 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 = 200 and A₂ = 300.
• B)A₁ = A₂ = 200.
• C)A₁ = 100 and A₂ = 200.
• D)A₁ = 150 and A₂ = 200.
• E)A₁ = 250 and A₂ = 200.

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Definitions:

Standard Deviation

A quantification of the variability or scattering of data points within a dataset.

Population Mean

The average value of a characteristic in a population, calculated by summing all values and dividing by the total number of observations.

Sampling Distribution

A distribution of probabilities for a statistic, derived from taking many samples from a designated population.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.