Question
A firm producing 50 units of a good incurs a total cost of (50) = 300. Give a value for the firm's total cost when
A firm producing 50 units of a good incurs a total cost of (50) = 300. Give a value for the firm's total cost when producing 60 units of the good 3, (60), such that the cost function exhibits economies of scale.
11) A firm producing 50 units of three goods incurs a total cost of (50,50,50) = 270. The firm's total costs when producing only 50 units of good 1 and only 50 units of good 2 are (50,0,0) = 90 and (0,50,0) = 90, respectively. Give a value for the firm's total cost when producing only 50 units of good 3, (0,0,50), such that the cost function exhibits economies of scope.
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