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Suppose the Total Cost of Producing Goods Q1 and Q2

Question 109

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 + Suppose the total cost of producing goods Q<sub>1</sub> and Q<sub>2</sub> jointly is given by TC = 100 + 50Q<sub>1</sub>Q<sub>2</sub> - (Q<sub>1</sub>Q<sub>2</sub>) <sup>0.5</sup>. The total cost of producing Q<sub>1</sub> and Q<sub>2</sub> in two separate facilities is given by TC = 75 + 3,000Q<sub>1</sub> + 1,000Q<sub>2</sub> +   +   )  If the firm produces Q<sub>1</sub> = 40 and Q<sub>2</sub> = 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 + Suppose the total cost of producing goods Q<sub>1</sub> and Q<sub>2</sub> jointly is given by TC = 100 + 50Q<sub>1</sub>Q<sub>2</sub> - (Q<sub>1</sub>Q<sub>2</sub>) <sup>0.5</sup>. The total cost of producing Q<sub>1</sub> and Q<sub>2</sub> in two separate facilities is given by TC = 75 + 3,000Q<sub>1</sub> + 1,000Q<sub>2</sub> +   +   )  If the firm produces Q<sub>1</sub> = 40 and Q<sub>2</sub> = 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
) 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

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