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Your mt produces two products, 91 and 92- An economic consulting rm has estimated your cost function to he C(Q1:Qzl'=m + 9192 + Qt +

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Your mt produces two products, 91 and 92- An economic consulting rm has estimated your cost function to he C(Q1:Qzl'=m + 9192 + Qt + Q2 a. Are there economies of scope? h. Are there cost complementarities? c. Your market for Q] is not very good, and an overseas m'r has offered to buy the division of your company that produces Q]. What will happen to your marginal cost of producing 92 if you sell the division? d. You currently produce 2 units of Q] and 100 units of Q? If you sell the division that produces Ql , what will happen to your average cost of producing 92 if you continue to produce 100 units of Q1

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