Suppose a university could educate undergraduates (U) at one campus at a cost of C(U) = 40,000U and graduate students (G) at a different campus at a cost of C(G) = 20,000,000 + 20,000G. Alternatively, the university could educate undergraduates and graduates at the same campus at a cost of C(U,G) = 20,000,000 + 20,000G + 20,000U. a. Does this cost structure exhibit economies of scale? Does this cost structure exhibit economies of scope? Explain. b. In addition to producing undergraduate and graduate education, describe another output of a public university. Are these activities complementary with either graduate or undergraduate education?

Please explain. ECON OF EDUCATION.