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.

Diversity is an obstacle all marketers face: true false

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.