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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