Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns. The joint cost curve is: C_E,F ( q₁, q₂) = 75 q₁ + 125 q₂ - 20 q₁^1/² q₂^1/², where q₁ is the number of evening gowns and q₂ is the number of formal gowns Trisha produces. If Trisha produces evening gowns alone, the cost function is: C_E ( q₁) = 75 q₁ . If Trisha produces formal gowns alone, the cost function is:
C_F (q₂) = 125 q₂. Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

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The Answer of Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns. The joint cost curve is: C_E,F ( q₁, q₂) = 75 q₁ + 125 q₂ - 20 q₁^1/² q₂^1/², where q₁ is the number of evening gowns and q₂ is the number of formal gowns Trisha produces. If Trisha produces evening gowns alone, the cost function is: C_E ( q₁) = 75 q₁ . If Trisha produces formal gowns alone, the cost function is: C_F (q₂) = 125 q₂. Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

Trisha's Fashion Boutique Can Jointly Produce Evening Gowns and Formal