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Are there economies of scope

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Reference no: EM131709805

Your firm produces two products, Q1 and Q2. An economic consulting firm has estimated your cost function to be.

A) Are there economies of scope?

B) Are there cost complementarities?

C) Your market for Q1 is not very good, and an overseas firm 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?

Reference no: EM131709805

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