Business, 15.07.2021 18:20, kenzielema12

Suppose a firm has the ability to produce soap, toothpaste, or both. If the firm produces q Subscript Upper S units of soap and no toothpaste, then the total cost of production will be $35 thousand. If instead the firm produces q Subscript Upper T units of toothpaste and no soap, then the total cost of production will be $10 thousand. However, if the firm produces both q Subscript Upper S units of soap and q Subscript Upper T units of toothpaste, then the firm's total cost of production will be $110 thousand. Does this firm potentially experience economies of scope, diseconomies of scope, or no economies of scope? This firm potentially experiences diseconomies of scope .

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Suppose a firm has the ability to produce soap, toothpaste, or both. If the firm produces q Subscri...