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Assume that Namibia's cement Industry is represented theby the following cost function; C(q1, q2) = 5 + 10q1+ 15q2- 2q1q2/2 Where q1denotes Ohorongo cement output

Assume that Namibia's cement Industry is represented theby the following cost function;

C(q1, q2) = 5 + 10q1+ 15q2- 2q1q2/2

Where q1denotesOhorongocement output and q2representCheetahcement output. Further to this, the Ray's average costs assume 1=0.6 and2=0.4, thus we have q1= 0.6Q;q2= 0.4Q.Use Ray's average cost of multi-product firms to determine if the the cement industry exhibits a global economies of scale or diseconomies of scale. Show all your steps.

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