Consider a honey farm located next to an apple orchard. The cost function of the honey farm iscH(H)=H2

and the marginal cost of honey isMCH(H)=2H

, where H is the amount of honey. The cost function of the apple orchard iscA(A,H)=A2AH

, and its marginal cost of apples isMCA(A)=2AH

, where A is the amount of apples. The price of honey ispH=2

, and the price of apples ispA=2

. What is the equilibrium amount of apples, if the firms merge?

Group of answer choices

neither one is correct

2

8

1

6