Suppose an apple orchard is located next to a honey farm and each is separately owned and both operate in perfectly competitive industries. The cost functions of the two farms are as follows (the presence of honey bees makes it cheaper for the apple farmer to grow apples) where C is cost and Q is quantity in apples and honey: Ch= Qh^2/100
Ca= Qa^2/100)-Qn

Required:
a. If the price of apples is $3/ea and the price of honey is $2/unit, how many of each will each farmer produce?
b. What is the socially optimal output of honey and apples?
c. What suggestion would you make to ensure that the farmers behave in a socially optimal way?

2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?

Scoresby co. uses 6 machine hours and 2 direct labor hours to produce product x. it uses 8 machine hours and 16 direct labor hours to produce product y. scoresby's assembly and finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. how much overhead cost will be charged to the two products? a. product x = $1,440; product y = $2,560 b. product x = $1,760; product y = $4,480 c. product x = $3,200; product y = $9,600 d. product x = $800; product y = $800