Business, 18.06.2020 02:57 nataluarenhg6924

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 CH(H, A) = H2/300 - 3A and the cost function of the apple orchard is CA(A) = A2/100 where H and A are the numbers of units of honey and apples produced respectively. The price of honey is $2 and the price of apples is $3 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 = 100 and A2 = 350.
B. A1 = 175 and A2 = 350.
C. A1 = A2 = 350.
D. A1 = 350 and A2 = 500.
E. A1 = 250 and A2 = 350.

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An apiary is located next to an apple orchard. The apiary produces honey and the apple orchard produ...