Question
Recall that the scale economy index for a two product firm can be written=(1,2)/[11+22]S=C(Q1,Q2)/[Q1MC1+Q2MC2], assuming fixed output proportions. If the cost function is (1,2)=251+302+312/2C(Q1,Q2)=25Q1+30Q2+3Q1Q2/2, which
Recall that the scale economy index for a two product firm can be written=(1,2)/[11+22]S=C(Q1,Q2)/[Q1MC1+Q2MC2], assuming fixed output proportions. If the cost function is (1,2)=251+302+312/2C(Q1,Q2)=25Q1+30Q2+3Q1Q2/2, which of the following statements is correct?
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Foodservice Management Principles and Practices
Authors: June Payne Palacio, Monica Theis
12th edition
133003213, 9780133003215, 978-0135122167
