Suppose a firm has the production technology shown below for Goods 1 & 2.

Good 1

Good 2

Both

Cost

Cost

Cost

10

50

10

60

10

10

100

20

100

20

100

20

20

180

30

150

30

130

30

30

150

a) Does Good 1 indicate economies of scale? Why?

b) Does Good 2 indicate economics of scale? Why?

c) Do the two goods indicate economies of scope? Why?