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1D. F5811 Inc. has two separate subsidiaries: F-IT produces peanut butter and HT produces Jelly. Neither subsidiary sells output to the external rnaritet. Instead, FEE] Inc. uses the output from each subsidiary to produce peanut butter 8: jelly 'ltits' that it sells in the retail market. Although these kits come in different sites, each contains peanut butter and jelly in the "'proper"r ratio of 1:1 [i.e.. one oz. of peanut butter for one o1. ofjellyl. P-lT's cost function for peanut butter production is: TC, = 150 + HEP, where P represents oz. of peanut butter. J-lT's cost function for jelly production is: TE} = 5D + 30}, where .i represents oz. of jelly. An in-house research scientist has come up with a new prooess that produces one ounce of jelly as a byproduct of one ounce of peanut butter produced. The cost function for the new production process ls: 'i"t'.'1.._,I = l + 10?. it. Find a level oi output (P) for which production exhibits economies of scope. In. Find a level of output (P: for which production exhibits diseconomies of scope