Cogswell Cogs can jointly produce cogs or rotors.The joint cost function is:
C_C,R(q₁,q₂)= 35q₁ + 12q₂ + 100 ,
where q₁ is the number of cogs and q₂ is the number of rotors Cogswell produces.If Cogswell produces cogs alone,the cost function is:
C_C(q₂)= 35q₁ .If Cogswell produces rotors alone,the cost function is: C_R(q₂)= 12q₂.Calculate Cogswell's degree of economies of scope if he produces 64 cogs and 16 rotors.

Question

Cogswell Cogs can jointly produce cogs or rotors.The joint cost function is:
C_C,R(q₁,q₂)= 35q₁ + 12q₂ + 100

Cogswell Cogs can jointly produce cogs or rotors.The joint cost function is: C<sub>C,R</sub>(q<sub>1</sub>,q<sub>2</sub>)= 35q<sub>1</sub> + 12q<sub>2</sub> + 100 , where q<sub>1</sub> is the number of cogs and q<sub>2</sub> is the number of rotors Cogswell produces.If Cogswell produces cogs alone,the cost function is: C<sub>C</sub>(q<sub>2</sub>)= 35q<sub>1</sub> .If Cogswell produces rotors alone,the cost function is: C<sub>R</sub>(q<sub>2</sub>)= 12q<sub>2</sub>.Calculate Cogswell's degree of economies of scope if he produces 64 cogs and 16 rotors.

,
where q₁ is the number of cogs and q₂ is the number of rotors Cogswell produces.If Cogswell produces cogs alone,the cost function is:
C_C(q₂)= 35q₁ .If Cogswell produces rotors alone,the cost function is: C_R(q₂)= 12q₂.Calculate Cogswell's degree of economies of scope if he produces 64 cogs and 16 rotors.

Quizplus · Accepted Answer

The Answer of Cogswell Cogs can jointly produce cogs or rotors.The joint cost function is: C_C,R(q₁,q₂)= 35q₁ + 12q₂ + 100 , where q₁ is the number of cogs and q₂ is the number of rotors Cogswell produces.If Cogswell produces cogs alone,the cost function is: C_C(q₂)= 35q₁ .If Cogswell produces rotors alone,the cost function is: C_R(q₂)= 12q₂.Calculate Cogswell's degree of economies of scope if he produces 64 cogs and 16 rotors.

Cogswell Cogs Can Jointly Produce Cogs or Rotors