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In Problem 2, Suppose That the Cost Function of the Honey

Question 17

Multiple Choice

In Problem 2, suppose that the cost function of the honey farm is CH(H, A) = In Problem 2, suppose that the cost function of the honey farm is C<sub>H</sub>(H, A) = - 2A and the cost function of the apple orchard is C<sub>A</sub>(H, A) = , 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 A<sub>1</sub> be the output of apples if the firms operate independently, and let A<sub>2</sub> be the output of apples if the firms are operated by a profit-maximizing single owner. A) A<sub>1</sub> = 200 and A<sub>2</sub> = 300. B) A<sub>1</sub> = A<sub>2</sub> = 200. C) A<sub>1</sub> = 100 and A<sub>2</sub> = 200. D) A<sub>1</sub> = 150 and A<sub>2</sub> = 200. E) A<sub>1</sub> = 250 and A<sub>2</sub> = 200. - 2A and the cost function of the apple orchard is CA(H, A) = In Problem 2, suppose that the cost function of the honey farm is C<sub>H</sub>(H, A) = - 2A and the cost function of the apple orchard is C<sub>A</sub>(H, A) = , 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 A<sub>1</sub> be the output of apples if the firms operate independently, and let A<sub>2</sub> be the output of apples if the firms are operated by a profit-maximizing single owner. A) A<sub>1</sub> = 200 and A<sub>2</sub> = 300. B) A<sub>1</sub> = A<sub>2</sub> = 200. C) A<sub>1</sub> = 100 and A<sub>2</sub> = 200. D) A<sub>1</sub> = 150 and A<sub>2</sub> = 200. E) A<sub>1</sub> = 250 and A<sub>2</sub> = 200. , 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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