Question: needed help with this question Question 4 (6 points) Suppose that a honey farm is located next to an apple orchard and each acts as

needed help with this question

needed help with this question Question 4 (6 points) Suppose that a

Question 4 (6 points) Suppose that a honey farm is located next to an apple orchard and each acts as a competi- tive firm. Let the amount of apples produced be measured by A and the amount of honey produced be measured by H. The cost functions of the two firms are CH(H ) = H2/100 and CA(A) = (A2/100) - H. The price of honey is $2 and the price of apples is $3. a. (2 points) If the firms each operate independently, what is the equilibrium amount of honey and apple produced? Show your work. b. (2 points) Suppose that the honey and apple firms merged. What would be the profit- maximizing output of honey and apple for the combined firm? Show your work. c. (2 points) What is the socially efficient output of honey? If the firms stayed separate, how much would honey production have to be subsidized to induce an efficient supply

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