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6. An apiary is located next to an apple orchard. 'Ihe 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. 'Ihe apiary produces honey and the apple orchard produces apples. The cost function of the apiary is CH(H, A) = (ID.01)>HF1 ZXA and the cost function of the apple orchard is CA(H, 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 rms operate independently (privately), and let As be the output of apples if the rms are Operated by a single owner so as to maximize total prot. A. APA3275 B. ASAP275 C. APAS

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