A computer company produces hardware and software

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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?

Reference no: EM13694022

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