Consider the following diagram where a perfectly competitive firm faces a price of $$40.$

Figure $8\mathrm{.}1$

Refer to Figure $8\mathrm{.}1.$ At the profit$-$maximizing level of output, AVC is

$$30.$

$$26.$

$$32.$

$$22.$

Diseconomies of scope exist when:

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)C(Q_1)-C(Q_2)>C(Q_1,Q_2)C(Q_1)-C(Q_2)$

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)$

$C(Q_1)-C(Q_2)>C(Q_1,Q_2)C(Q_1)+C(Q_2)$

$C(Q_1)-C(Q_2)$

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)$

$C(Q_1)-C(Q_2)>C(Q_1,Q_2)$

Diseconomies of scope exist when:

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)C(Q_1)-C(Q_2)>C(Q_1,Q_2)C(Q_1)-C(Q_2)$

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)$

$C(Q_1)-C(Q_2)>C(Q_1,Q_2)C(Q_1)+C(Q_2)$

$C(Q_1)-C(Q_2)$

$C(Q_1)+C(Q_2)>C(Q_1,Q_2)$

$C(Q_1)-C(Q_2)>C(Q_1,Q_2)$