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QUESTION

conomic consulting firm has estimated your cost function to be C(Q1,Q2)=100+Q1Q2+Q1+Q2 Are there economics of scope? Are there cost complementarities?...

your firm produces two product Q1 and Q2 An economic consulting firm has estimated your cost function to be C(Q1,Q2)=100+Q1Q2+Q1+Q2Are there economics of scope?Are there cost complementarities?Your market for Q1 is not very good, and an overseas firm has offered to buy the division of your company that produces Q1. What will happen to your marginal cost of producing Q2 if you sell the division?

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