Does good one signify economies of scale


Suppose a firm has the production technology shown below for Goods 1 and 2 and respond to the following with rationale.

a. Does Good 1 indicate economies of scale?

b. Does Good 2 indicate economies of scale?

c. Do the two goods indicate economies of scope?

          Good 1                              Good 2 Both

Q1       Cost                     Q1         Cost                          Q1                Q2            Cost

10         50                       10          60                             10                  10              100   

20        100                      20         100                            20                  20              180

30        150                      30         130                            30                  30              250

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Microeconomics: Does good one signify economies of scale
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