Question: 9.10 If the two outputs are actually the same good, we can deine total output as q = q1 + q2. Suppose that in this
9.10 If the two outputs are actually the same good, we can deine total output as q = q1 + q2. Suppose that in this case average cost (= C/q) decreases as q increases. Show that this irm also enjoys economies of scope under the deinition provided here.
Suppose that a firm’s fixed proportion production function is given by q = min(5k, 10l
).
a.
b.
c.
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