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  3. c(q1, q2) = 3,500 - 205q1q2 - (q1)2 + (q2)2 a. wha

C(Q1, Q2) = 3,500 - 205Q1Q2 - (Q1)2 + (Q2)2 A. What do you need to know from...

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Question

Economics

C(Q1, Q2) = 3,500 -205Q1Q2 - (Q1)2 +(Q2)2

A. What do you need to know from the equation above to see ifthere are Cost Complementarity? Are there Cost Complementarity?

B. What is MC1(Q1,Q2) ?

C. What is MC2(Q1,Q2) ?

D. Are there economies of scope? Explain.

E. What are the implications for a merger?

Answer & Explanation Solved by verified expert
4.2 Ratings (996 Votes)
A Cost Complementarities exists when marginal cost of one output decreases with there is increase of another output That is d MCQ1 dQ2    See Answer
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