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Home / Questions / Suppose a firm has the ability to produce​ soap, toothpaste, or both. If the firm produces...

Suppose a firm has the ability to produce​ soap, toothpaste, or both. If the firm produces qS units of soap and no​ toothpaste, then the total cost of production will be ​$15thousand. If instead the

Suppose a firm has the ability to produce​ soap, toothpaste, or both. If the firm produces qS units of soap and no​ toothpaste, then the total cost of production will be ​$15thousand. If instead the firm produces qT units of toothpaste and no​ soap, then the total cost of production will be ​$13 thousand.​ However, if the firm produces both qS units of soap and qT units of​ toothpaste, then the​ firm's total cost of production will be ​$79 thousand.Does this firm potentially experience economies of​ scope, diseconomies of​ scope, or no economies of​ scope?

This firm potentially experiences diseconomies of scope

.What is the​ firm's degree of diseconomies of​ scope? The degree to which this firm potentially experiences

diseconomies of scope is ________

Apr 12 2021 View more View Less

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