You are the production manager for Basket'O'Goodness Canned Goods (BOG). BOG produces canned beans for which the demand is Qb = 9000 - 30 Pb, where Qb is the quantity of cans of beans sold and Pb is the price of beans per can. The cost of producing canned beans is TC = 5000 + 50Qb. The production process includes taking the shell off each bean. These shells can be sold to other companies to produce cat litter at no cost to BOG. The demand for the shells is Qs = 6000 - 800Ps, where Qs is the number of pounds of shells sold and Ps is the price of a pound of shells. Please note, the production of one can of beans produces one pound of shells.

a. Do economies of scope exist for beans and shells?

b. What is the optimal number of cans of beans that BOG should produce and sell?

c. What is the optimal number of pounds of shells BOG should sell to cat litter producers? At what price should the shells be sold?