If there are economies of scope and if the price for each supply of custom-made paper. product

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If there are economies of scope and if the price for each supply of custom-made paper. product equals marginal cost, is it possible for a firm to cover all its costs? If the firm's average cost of produc- tion declines the more it produces, can a price equal to marginal cost ever cover all its costs? Suppose the cost of producing q cars and q trucks is 10,000+ 70g + 8092 . Calculate the marginal cost of producing cars and the measure of scope economies when q =100 and q = 200 .

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Modern Industrial Organization

ISBN: 9780321011459

3rd Edition

Authors: Dennis W. Carlton, Jeffrey M. Perloff

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