your firm produces two product Q1 and Q2 An economic consulting firm has estimated your cost function to be C(Q1,Q2)=100+Q1Q2+Q1^2+Q2^2A.Are there economics of scope?B. Are there Cost complementarities?C. Your Market for Q1 if not very good, and overeas firms has offered to buy the division of your company that produces Q1. What will happen to your marginal cost of producing Q2 if you sell the division?
your firm produces two product Q1 and Q2 An economic consulting firm has estimated your cost function to be C(Q1,Q2)=100+Q1Q2+Q1^2+Q2^2A.Are there economics of scope?B. Are there Cost complementarities?C. Your Market for Q1 if not very good, and overeas firms has offered to buy the division of your company that produces Q1. What will happen to your marginal cost of producing Q2 if you sell the division?
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