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1 year ago

A firm can produce two products with the cost function c(q1, q2) = 10 5q1 5q2 - 0. 2q1q2. the firm enjoys:____.

Business

1 answer:

Llana [10]1 year ago

6 0

The correct option for The firm enjoys economies of scope.

economies of scope exist if C(Q1, 0) + C(0, Q2) > C (Q1, Q2) (10 + 5Q1) + (10 + 5Q2) > 10 + 5Q1 + 5Q2 - 0.2Q12Q2.

Economies of scope is an economic theory stating that the average total cost of production decrease as a result of increasing the number of different goods produced. For example, a gas station that sells gasoline can sell soda, milk, baked goods, etc.

Economies of scope is a financial precept wherein a commercial enterprise's unit value to supply a product will decline because the form of its products will increase. In different words, the extra one of kind-but-comparable goods you produce, the lower the total cost to provide each one may be.

Your question is incomplete. Please read below for the missing content.

A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 - 0.2Q1Q2. The firm enjoys:

A. economies of scale in the two products separately.

B. economies of scope.

C. cost complementarity.

D. economies of scale in the two products separately and cost complementarity.

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Answer:

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2 years ago

Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand

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Answer:

So unit elastic at q = 5

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and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

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marginal revenue TR(q)/d(q) = -8q + 40

Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

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2 years ago

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3 years ago

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Answer:

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3 years ago

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Answer:

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3 years ago