The Equation Below Gives the Degree of Economies of Scope

Multiple Choice

The equation below gives the degree of economies of scope (SC) : where C(Q₁) is the cost of producing output is the cost of producing output Q₂, and is the joint cost of producing both outputs. If SC is negative:

A) there are neither economies nor diseconomies of scope.
B) there are economies of scope.
C) there are diseconomies of scope.
D) there are both economies and diseconomies of scope.