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

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(HA) ? H2/100 − 1A and the cost function of the apple orchard is CA(HA) ? 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.

22.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(HA) ? H2/100 − 3A and the cost function of the apple orchard is CA(HA) ? A2/100, where H and A are the number of units of honey and apples produced respectively. The price of honey is $2 and the price of apples is $7 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 ? A2 ? 350.

b.A1 ? 250 and A2 ? 350.

c.A1 ? 175 and A2 ? 350.

d.A1 ? 350 and A2 ? 500.

e.A1 ? 100 and A2 ? 350.

23.Peter’s utility is U(cdh) ? 8c ? 18d − d2 − 6h, where d is the number of hours per day that he spends driving around, h is the number of hours per day spent driving around by other people in his home town, and c is the amount of money he has left to spend on other stuff besides gasoline and auto repairs. Gas and auto repairs cost $.50 per hour of driving. All the people in Peter’s home town have the same tastes. If each citizen believes that his own driving will not affect the amount of driving done by others, they will all drive D1 hours per day. If they are all drive the same amount, they would all be best off if each drove D2 hours per day, where

a.D1 ? 7 and D2 ? 4.

b.D1 ? D2 ? 7.

c.D1 ? 9 and D2 ? 5.

d.D1 ? 10 and D2 ? 0.

e.D1 ? 7 and D2 ? 2.

24.Charlie’s utility is U(cdh) ? 4c ? 10d − d2 − 4h, where d is the number of hours per day that he spends driving around, h is the number of hours per day spent driving around by other people in his home town, and c is the amount of money he has left to spend on other stuff besides gasoline and auto repairs. Gas and auto repairs cost $.50 per hour of driving. All the people in Charlie’s home town have the same tastes. If each citizen believes that his own driving will not affect the amount of driving done by others, they will all drive D1 hours per day. If they are all drive the same amount, they would all be best off if each drove D2 hours per day, where

a.D1 ? 6 and D2 ? 3.

b.D1 ? 7 and D2 ? 1.

c.D1 ? D2 ? 4.

d.D1 ? 4 and D2 ? 2.

e.D1 ? 4 and D2 ? 0.

25.Peter’s utility is U(cdh) ? 2c ? 9d − d2 − 6h, where d is the number of hours per day that he spends driving around, h is the number of hours per day spent driving around by other people in his home town, and c is the amount of money he has left to spend on other stuff besides gasoline and auto repairs. Gas and auto repairs cost $.50 per hour of driving. All the people in Peter’s home town have the same tastes. If each citizen believes that his own driving will not affect the amount of driving done by others, they will all drive D1 hours per day. If they are all drive the same amount, they would all be best off if each drove D2 hours per day, where

a.D1 ? 4 and D2 ? 1.

b.D1 ? 7 and D2 ? 0.

c.D1 ? 6 and D2 ? 2.

d.D1 ? D2 ? 4.

e.D1 ? 4 and D2 ? 0.

26.An airport is located next to a housing development. Where X is the number of planes that land per day and Y is the number of houses in the housing development, profits of the airport are 28X − X2 and profits of the developer are 20Y − Y2 − XY. Let H1 be the number of houses built if a single profit-maximizing company owns the airport and the housing development. Let H2 be the number of houses built if the airport and the housing development are operated independently and the airport has to pay the developer the total “damages” XY done by the planes to the profits of the developer.

a.H1 ? H2 ? 4.

b.H1 ? 4 and H2 ? 10.

c.H1 ? 10 and H2 ? 4.

d.H1 ? 6 and H2 ? 9.

e.H1 ? 9 and H2 ? 13.

27.An airport is located next to a housing development. Where X is the number of planes that land per day and Y is the number of houses in the housing development, profits of the airport are 26X − X2 and profits of the developer are 22Y − Y2 − XY. Let H1 be the number of houses built if a single profit-maximizing company owns the airport and the housing development. Let H2 be the number of houses built if the airport and the housing development are operated independently and the airport has to pay the developer the total “damages” XY done by the planes to the profits of the developer.

a.H1 ? 11 and H2 ? 6.

b.H1 ? H2 ? 6.

c.H1 ? 8 and H2 ? 10.

d.H1 ? 6 and H2 ? 11.

e.H1 ? 10 and H2 ? 14.

28.An airport is located next to a housing development. Where X is the number of planes that land per day and Y is the number of houses in the housing development, profits of the airport are 36X − X2 and profits of the developer are 42Y − Y2 − XY. Let H1 be the number of houses built if a single profit-maximizing company owns the airport and the housing development. Let H2 be the number of houses built if the airport and the housing development are operated independently and the airport has to pay the developer the total “damages” XY done by the planes to the profits of the developer.

a.H1 ? 18 and H2 ? 20.

b.H1 ? 21 and H2 ? 16.

c.H1 ? H2 ? 16.

d.H1 ? 16 and H2 ? 21.

e.H1 ? 20 and H2 ? 24.

29.A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (36 ? J)C − 2C2 and the profits of the jeweler will be (30 ? C)J − 2J2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be

a.$17.

b.$34.

c.$51.

d.$8.50.

e.$25.50.

30.A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (30 ? J)C − 2C2 and the profits of the jeweler will be (24 ? C)J − 2J2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be

a.$42.

b.$14.

c.$28.

d.$7.

e.$21.

Dec 13 2019 View more View Less

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