Ans is 1st option i.e. A and C is correct
Economies of scope means average cost decreases when more than one product is produced
Thus LOng run cost of producing both G and W should be less than producing G and W separately
thus ans is A. i.e. Equation A and C is correct
Economies of scope in the production of goods G and W exist if O both a...
Economies of scope exist when: Multiple Choice C(η) + C(O2) <c(O, O2). Ο. C(O) - C(22) <clo, O2). Ο co) + C(22) > CO. O2). Ο co- C(O2) > Clo, C2).
Select ANY company, which is enjoying economies of scale, economies of scope or both. Explain briefly how this company achieves the economies of scale/scope.
3. Show whether the cost function C (q,+q14-(qiq) exhibits both economies of scope and economies of scale b Derive the bDerive the conditions under which the cost function C(qi.q) 1+(q + g2) exhibits economies of scope. 4 Consider a market in which all firms have the following total cost function C(g)-150+q+0.5q What level of output corresponds to the minimum average total b) cost (minimum efficient scale)? If firms are perfectly competitive, what is the equation of an individual firm's supply...
5. If a hospital has economies of scale with respect to production, then: a. it cannot have economies of scope. b. it must have economies of scope. c. it may or may not have economies of scope. d. it can only have economies of scope for those activities for which it has economies of scale. it can only have economies of scope for those activities for which it does not have economies of scale.
2. "Economies of scope" exhibits when the joint cost of producing two or more goods is less than the sum of the separate costs. One of the examples is the oil refinery using the exhausted heat to cogenerate electric power. Please provide one more example of industry exhibiting economies of scope. A URL reference link to support your answer is a plus. Please answer all the two questions by one paragraph for each
If there are economies of scope across two businesses, most providers will ______. a. Be specialized b. Be small and competitive c. Sell both products
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
Two firms, each producing different goods, can achieve a greater output than one form producing both goods with the same inputs. We can conclude that the production process involves: o diseconomies of scope. o decreasing returns to scale. increasing returns to scale. O economies of scale.
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function \(F(K, L)=K^{\alpha} L^{1-\alpha}\), economy 2 has a production function \(G(K, L)=\alpha K+(1-\alpha) L\). For both economies capital grows according to (1).a) Write output per worker as a function of capital per worker for both economies.b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that...