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In the Text,we Showed That the Multiproduct Cost Function C(Q1,Q2)=f+aQ1Q2+(Q1)2+(Q2)2C \left( Q _ { 1 } , Q _ { 2 } \right) = f + a Q _ { 1 } Q _ { 2 } + \left( Q _ { 1 } \right) ^ { 2 } + \left( Q _ { 2 } \right) ^ { 2 }

Question 133

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In the text,we showed that the multiproduct cost function C(Q1,Q2)=f+aQ1Q2+(Q1)2+(Q2)2C \left( Q _ { 1 } , Q _ { 2 } \right) = f + a Q _ { 1 } Q _ { 2 } + \left( Q _ { 1 } \right) ^ { 2 } + \left( Q _ { 2 } \right) ^ { 2 } exhibits cost complementarity whenever a<0a < 0 and economies of scope whenever faQ1Q2>0f - a Q _ { 1 } Q _ { 2 } > 0 .
a.Can cost complementarity exist without economies of scope?
b.Can there be economies of scope when cost complementarities exist?

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a.Cost complementarities cannot exist wi...

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