One Guy's Pizza jointly produces pizzas and calzones. The joint cost function is:
C_P_,_C( q₁, q₂) = 4 q₁ + 0.8
- 1.5 q₁^1/⁵ q₂^1/⁵, where q₁ is the number of pizzas and q₂ is the number of calzones One Guy's Pizza produces. If One Guy produces pizzas alone, the cost function is:
C_P (q₁) = 4 q₁. If One Guy produces calzones alone, the cost function is: C_C (q₂) = 0.8 q₂. Calculate One Guy's degree of economies of scope if they produce 1,024 pizzas and 243 calzones.

Question

One Guy's Pizza jointly produces pizzas and calzones. The joint cost function is:
C_P_,_C( q₁, q₂) = 4 q₁ + 0.8

One Guy's Pizza jointly produces pizzas and calzones. The joint cost function is: C<sub>P</sub><sub>,</sub><sub>C</sub>( q<sub>1</sub>, q<sub>2</sub>) = 4 q<sub>1</sub> + 0.8 - 1.5 q<sub>1</sub><sup>1/</sup><sup>5</sup> q<sub>2</sub><sup>1/</sup><sup>5</sup>, where q<sub>1</sub> is the number of pizzas and q<sub>2</sub> is the number of calzones One Guy's Pizza produces. If One Guy produces pizzas alone, the cost function is: C<sub>P</sub> (q<sub>1</sub>) = 4 q<sub>1</sub>. If One Guy produces calzones alone, the cost function is: C<sub>C</sub> (q<sub>2</sub>) = 0.8 q<sub>2</sub>. Calculate One Guy's degree of economies of scope if they produce 1,024 pizzas and 243 calzones.

- 1.5 q₁^1/⁵ q₂^1/⁵, where q₁ is the number of pizzas and q₂ is the number of calzones One Guy's Pizza produces. If One Guy produces pizzas alone, the cost function is:
C_P (q₁) = 4 q₁. If One Guy produces calzones alone, the cost function is: C_C (q₂) = 0.8 q₂. Calculate One Guy's degree of economies of scope if they produce 1,024 pizzas and 243 calzones.

Quizplus · Accepted Answer

The Answer of One Guy's Pizza jointly produces pizzas and calzones. The joint cost function is: C_P_,_C( q₁, q₂) = 4 q₁ + 0.8 - 1.5 q₁^1/⁵ q₂^1/⁵, where q₁ is the number of pizzas and q₂ is the number of calzones One Guy's Pizza produces. If One Guy produces pizzas alone, the cost function is: C_P (q₁) = 4 q₁. If One Guy produces calzones alone, the cost function is: C_C (q₂) = 0.8 q₂. Calculate One Guy's degree of economies of scope if they produce 1,024 pizzas and 243 calzones.

One Guy's Pizza Jointly Produces Pizzas and Calzones