Q1. Over a reasonable range of quantities, firms producing goods A and B have th following cost function: C q4 IB = 100 + 4qa + 8qp- 2949B+ a. In the production of good A, are there economies of scale, diseconomies of scale, or constant returns to scale? b. Calculate the economies of scope (the way it is done in the book).

Q1. Over a reasonable range of quantities, firms producing goods A and B have th following cost function: C q4 IB = 100 + 4qa + 8qp- 2949B+ a. In the production of good A, are there economies of scale, diseconomies of scale, or constant returns to scale? b. Calculate the economies of scope (the way it is done in the book).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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