A firm produces two products, X and Y. The available production technology creates the following cost structures, where C(i, j) represents the cost of producingiunits of X andjunits of Y.

C(0, 65) = 1,800 C(300, 0) = 4,500

C(0, 200) = 5,800 C(400, 0) = 6,500

C(300, 65) = 5,500 C(400, 200) = 12,000

Please respond to the following questions:

1)Does this production technology exhibit economies of scale?

2)Does this production technology exhibit economies of scope?

3) If this company wants to produce 300 units of product X and 65 units of product Y, what is the savings (or loss) incurred if they are produced together rather than separately?