Which of the following cost functions exhibits economies of scope over the specified output range? A) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ 0 and Q₂ 0 B) C(Q₁,Q₂) = 2 − 3Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ 0 and Q₂ 0 C) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ 4

Question

Which of the following cost functions exhibits economies of scope over the specified output range? A) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 0 and Q₂ > 0 B) C(Q₁,Q₂) = 2 − 3Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 0 and Q₂ > 0 C) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ < 2 and Q₂ < 2 D) C(Q₁,Q₂) = 2 − 3Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 4 and Q₂ > 4

Quizplus · Accepted Answer

The Answer of Which of the following cost functions exhibits economies of scope over the specified output range? A) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 0 and Q₂ > 0 B) C(Q₁,Q₂) = 2 − 3Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 0 and Q₂ > 0 C) C(Q₁,Q₂) = 2 − 0.5Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ < 2 and Q₂ < 2 D) C(Q₁,Q₂) = 2 − 3Q₁Q₂ − (Q₁)² + (Q2)², for all Q₁ > 4 and Q₂ > 4

Which of the Following Cost Functions Exhibits Economies of Scope