Two firms currently produce the goods q1and q2separately, Econometrics

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Two firms currently produce the goods q1and q2separately

Two firms currently produce the goods q1and q2 separately. Their cost functions are C(q1) =25 + q1, and C(q2) = 35 + 2q2. By merging, they can produce the two goods jointly with costs described by the cost function C(q1, q2) = 45 + q1+ q2. Are there scope economies in
this case that would justify the merger?

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Econometrics: Two firms currently produce the goods q1and q2separately

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Two firms currently produce the goods q1and q2separately. Their cost functions are C(q1) =25 + q1, and C(q2) = 35 + 2q2. By merging, they can produce the two goods jointly with costs described by the cost function C(q1, q2) = 45 + q1+ q2.

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Econometrics: Two firms currently produce the goods q1and q2separately

Reference No:- TGS0569341

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Request for Solution File

Ask an Expert for Answer!!

Econometrics: Two firms currently produce the goods q1and q2separately

Reference No:- TGS0569341

Recent Questions Asked Econometrics

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