Multiple Choice
Suppose the total cost of producing goods Q1 and Q2 jointly is given by TC = 100 + 50Q1Q2 - (Q1Q2) 0.5. The total cost of producing Q1 and Q2 in two separate facilities is given by TC = 75 + 3,000Q1 + 1,000Q2 + +
) If the firm produces Q1 = 40 and Q2 = 100, the firm should produce the goods _____ because of _____ of scope.
A) jointly; economies
B) in separate facilities; diseconomies
C) jointly; diseconomies
D) in separate facilities; economies
Correct Answer:

Verified
Correct Answer:
Verified
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