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) = 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 $5 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 single owner so as to maximize total profit.

• A)A₁ = 300 and A₂ = 350.
• B)A₁ = A₂ = 300.
• C)A₁ = 175 and A₂ = 300.
• D)A₁ = 150 and A₂ = 300.
• E)A₁ = 250 and A₂ = 300.

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Definitions:

Earliest Schemas

The fundamental cognitive structures formed in early childhood that help individuals categorize and understand the world around them.

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Automatic, involuntary movements or actions in response to specific stimuli, present from birth and necessary for survival.

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Transformation that involves a fundamental difference in nature or character, not merely in amount or volume.

Sucking, Swallowing, and Breathing

Fundamental activities crucial for newborn survival, involving reflexes necessary for feeding and respiration.