Essay
Cogswell Cogs can jointly produce cogs or rotors. The joint cost function is: where q1 is the number of cogs and q2 is the number of rotors Cogswell produces. If Cogswell produces cogs alone, the cost function is:
(
) = 35
. If Cogswell produces rotors alone, the cost function is:
(
) = 12
. Calculate Cogswell's degree of economies of scope if he produces 64 cogs and 16 rotors.
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