The equation below gives the degree of economies of scope (SC): (© (2:) * C (Q2) - C (Q,.Q2)) C (Q,,Q2) SC = where C(Q,) is the cost of producing output Q,, C(Q2) is the cost of producing output Q,, and C(Q,,Q2) is the joint cost of producing both outputs. If SC is negative O A. there are both economies and diseconomies of scope. O B. there are economies of scope. OC. there are diseconomies of scope. O D. there are neither economies nor diseconomies of scope.
The equation below gives the degree of economies of scope (SC): (© (2:) * C (Q2) - C (Q,.Q2)) C (Q,,Q2) SC = where C(Q,) is the cost of producing output Q,, C(Q2) is the cost of producing output Q,, and C(Q,,Q2) is the joint cost of producing both outputs. If SC is negative O A. there are both economies and diseconomies of scope. O B. there are economies of scope. OC. there are diseconomies of scope. O D. there are neither economies nor diseconomies of scope.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 6SQ
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![The equation below gives the degree of economies of scope (SC):
c (22) - C (Q,.Q2))
C (Q,Q2)
C (Q,
+ C
SC =
where C(Q,) is the cost of producing output Q,, C(Q2) is the cost of producing output Q,, and C(Q,,Q2) is the joint cost of producing both outputs. If SC is negative
O A. there are both economies and diseconomies of scope.
O B. there are economies of scope.
OC. there are diseconomies of scope.
O D. there are neither economies nor diseconomies of scope.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5568f8ed-7cf5-4f54-8c51-6ea2e044276c%2F62492ae0-7332-435c-af24-820b6d180c3e%2Fln36cw6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The equation below gives the degree of economies of scope (SC):
c (22) - C (Q,.Q2))
C (Q,Q2)
C (Q,
+ C
SC =
where C(Q,) is the cost of producing output Q,, C(Q2) is the cost of producing output Q,, and C(Q,,Q2) is the joint cost of producing both outputs. If SC is negative
O A. there are both economies and diseconomies of scope.
O B. there are economies of scope.
OC. there are diseconomies of scope.
O D. there are neither economies nor diseconomies of scope.
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