Consider a beekeeper. The beekeeper has the following production function where the input is the number of hives and the output is quantity of honey produced. Beehives 1 2 3 4 5 6 7 8 9 10 11 Honey 12 23 33 42 50 57 66 71 75 78 80 The cost of installing a beehive is $100 and the price of a unit of honey (whatever that is...) is $20. Also each beehive increases the output of apples at a nearby apple orchard by $40. What if we wanted to subsidize honey instead? How much should that subsidy be per unit? (Round to one decimal place.)
Consider a beekeeper. The beekeeper has the following production function where the input is the number of hives and the output is quantity of honey produced.
Beehives 1 2 3 4 5 6 7 8 9 10 11
Honey 12 23 33 42 50 57 66 71 75 78 80
The cost of installing a beehive is $100 and the price of a unit of honey (whatever that is...) is $20. Also each beehive increases the output of apples at a nearby apple orchard by $40.
What if we wanted to subsidize honey instead? How much should that subsidy be per unit? (Round to one decimal place.)
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