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Suppose a firm has the production technology shown below for Goods 1 and 2 and respond to the following with rationale. a. . Does Good

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Suppose a firm has the production technology shown below for Goods 1 and 2 and respond to the following with rationale. a. . Does Good 1 indicate economies of scale? b. . Does Good 2 indicate economies of scale? C. . Do the two goods indicate economies of scope? Good 1 Good 2 Both Q1 Cost Q1 Cost Q1 Q2 Cost 10 50 10 60 10 10 100 20 100 20 100 20 20 180 30 150 30 130 30 30 250

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