A computer company produces hardware and software using the same plant and labor. The total cost of

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A computer company produces hardware and software using the same plant and labor. The total cost of producing computer processing units H and software programs S is given by
TC = aH + bS - cHS
where a, b, and c are positive. Is this total cost function consistent with the presence of economies or diseconomies of scale? With economies or diseconomies of scope?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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