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A Firm Produces Two Goods, Q1 and Q2

Question 68

Multiple Choice

A firm produces two goods, Q1 and Q2. For economies of scope to occur, it must be TRUE that:


A) TC(Q1,0) + TC(0,Q2) > TC(Q1,Q2) .
B) TC(Q1,0) + TC(0,Q2) < TC(Q1,Q2) .
C) A firm produces two goods, Q<sub>1</sub> and Q<sub>2</sub>. For economies of scope to occur, it must be TRUE that: A) TC(Q<sub>1</sub>,0) + TC(0,Q<sub>2</sub>) > TC(Q<sub>1</sub>,Q<sub>2</sub>) . B) TC(Q<sub>1</sub>,0) + TC(0,Q<sub>2</sub>) < TC(Q<sub>1</sub>,Q<sub>2</sub>) . C) D) (TC(Q<sub>1</sub>1,0) + TC(0,Q<sub>1</sub>2) ) /(TC(Q<sub>1</sub>1, Q<sub>1</sub>2) ) < 1.
D) (TC(Q11,0) + TC(0,Q12) ) /(TC(Q11, Q12) ) < 1.

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