2. Let the cost function of the honey farm be CH(H, A) = 100-3A and let the cost function of the apple orchard be CA(H, A) = where H and A are the number of units of honey and apples produced, respectively. The price of honey is $7 and the price of apples is $5 per unit. Let A, 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. Calculate A₁ and A₂. 2.1 A₁ is equal to
2. Let the cost function of the honey farm be CH(H, A) = 100-3A and let the cost function of the apple orchard be CA(H, A) = where H and A are the number of units of honey and apples produced, respectively. The price of honey is $7 and the price of apples is $5 per unit. Let A, 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. Calculate A₁ and A₂. 2.1 A₁ is equal to
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.5P
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Question
2.1
![H²
100
2. Let the cost function of the honey farm be CH(H, A) = : -3A and let the cost function of the
apple orchard be CA(H, A) = where H and A are the number of units of honey and apples
produced, respectively. The price of honey is $7 and the price of apples is $5 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. Calculate A₁ and A₂.
2.1 A₁ is equal to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aae2ca8-0dba-474f-abdb-1eb4f96adaea%2Fcd7d679e-5286-49d1-b3bd-730fbbdb8246%2F3gh2qgq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:H²
100
2. Let the cost function of the honey farm be CH(H, A) = : -3A and let the cost function of the
apple orchard be CA(H, A) = where H and A are the number of units of honey and apples
produced, respectively. The price of honey is $7 and the price of apples is $5 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. Calculate A₁ and A₂.
2.1 A₁ is equal to
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