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:

Functional Silos Problem

Issues that arise when different departments or groups within an organization do not communicate effectively, leading to inefficiencies and reduced synergy.

Functional Units

Departments or divisions within an organization, each specializing in a particular area of operation, such as marketing, finance, or human resources.

Internal Matters

Issues, operations, or affairs that occur within an organization, company, or group, rather than involving external entities.

Team Viability

Refers to a team's capacity for sustained success and the ability to maintain long-term performance effectively.