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# Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns. The joint cost curve ...

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5 years ago
Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns.  The joint cost curve is: CE,F ( q1, q2) =  75 q1 + 125 q2 - 20 q11/2 q21/2, where q1 is the number of evening gowns and q2 is the number of formal gowns Trisha produces.  If Trisha produces evening gowns alone, the cost function is: CE ( q1) =  75 q1 . If Trisha produces formal gowns alone, the cost function is:
CF (q2) =  125 q2.  Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.
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## Microeconomics

Edition: 8th
Author:

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wrote...
5 years ago
 SC =   =   =  .  Since the measure is positive, Trisha enjoys economies of scope for evening and formal gown production.
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