Are there economies of scope or diseconomies of scope


Suppose a firm can produce 100 units of Thingies using 6 labourers and 4 machines. Separately, the same firm could produce 100 units of Doo-Hickeys using 4 labourers and 5 machines. The production manager believes that if the firm made Thingies and Doo-Hickeys together that the firm could produce 50 units of Thingies and 50 units of Doo-Hickeys using 4.5 labourers and 5 machines. Suppose that labourers cost $40 and the rental rate of capital is $35. If the production manager is correct are there economies of scope, diseconomies of scope, or no economies of scope by jointly producing Thingies and Doo-Hickeys?

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Microeconomics: Are there economies of scope or diseconomies of scope
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