8.31. A railroad has two types of services: freight service and passenger service. The stand-alone cost for freight service is TC1 ! 500 " Q1, where Q1 equals the number of ton-miles of freight hauled each day and TC1 is the total cost in thousands of dollars per day. The standalone cost for passenger service is TC2 ! 1000 " 2Q2, where Q2 equals the number of passenger-miles per day and TC2 is the total cost in thousands of dollars per day.

When a railroad offers both services jointly, its total is TC(Q1, Q2) ! 2000 " Q1 " 2Q2. Does the provision of passenger and freight service exhibit economies of scope?