Suppose a firm has multiproduct cost function that is additive such th

Suppose a firm has multiproduct cost function that is additive such that C(q1,q2 ) = C(q1 ) + C(q2 ). What is the degree of economies of scope (SC) for this firm?

A) 2
B) 1
C) Zero
D) Negative

 

ANSWER

C

 

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