Economies of scope in the production of goods G and W exist if A) $L T C ( G , W ) L T C ( G , 0 ) - L T C ( 0 , W )$ B) $L T C ( G , W )

Question

Economies of scope in the production of goods G and W exist if
A) $L T C ( G , W ) > L T C ( G , 0 ) - L T C ( 0 , W )$
B) $L T C ( G , W ) < L T C ( G , 0 ) + L T C ( 0 , W )$
C) $\operatorname { LTC } ( G , W ) - \operatorname { LTC } ( G , 0 ) < \operatorname { LTC } ( 0 , W )$
D) both a and c
E) both b and c

Quizplus · Accepted Answer

The Answer of Economies of scope in the production of goods G and W exist if
A) $L T C ( G , W ) > L T C ( G , 0 ) - L T C ( 0 , W )$
B) $L T C ( G , W ) < L T C ( G , 0 ) + L T C ( 0 , W )$
C) $\operatorname { LTC } ( G , W ) - \operatorname { LTC } ( G , 0 ) < \operatorname { LTC } ( 0 , W )$
D) both a and c
E) both b and c

Economies of Scope in the Production of Goods G and W