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6. An apiary is located next to an apple orchard. The apiary produces honey and the apple orchard produces apples. The cost function of the

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6. 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) = (0.05)XH2 - A and the cost function of the apple orchard is CA(A) = (0.01)XA2 where H and A are the number of units of honey and apples produced respectively. The price of honey is $1 and the price of apples is $3 per unit. Let Ap be the output of apples if the firms operate independently (privately), and let As be the output of apples if the firms are operated by a single owner so as to maximize total profit. A. 60 S (As - Ap) B. (As -Ap)

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