If the Örmís production function isF(K;L) =K(L+ 2), derive the short-run total cost functionSTC(q;r;w;K)

Economics Nov 07, 2020

If the Örmís production function isF(K;L) =K(L+ 2), derive the short-run total cost functionSTC(q;r;w;K).

2. The total cost of producing infant formula isCF= 30+qF. The total cost producing disposable diapers isCD= 30 + 0:5qD. The total cost of jointly producing them isCJ=70 +qF+ 0:25qD. Does this production process exhibit economies of scope?

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