A railroad provides passenger and freight service. The table shows the long-run total annual costs TC(F, P), where P measures the volume of passenger traffic and F the volume of freight traffic. For example, TC(10,300) = 1,000. Determine whether there are economies of scope for a railroad producing F = 10 and P = 300. Briefly explain.

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Total Annual Costs for Freight and Passenger Service P. Units of Passenger Service 300 F, Units of Freight Service 10 Ct-00 Cost 1000 Cost o Cost 400