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A firm produces two products, X and Y. The production technology displays the following costs where C(i, j) represents the cost of producing I units of X and j units of Y

05 / 03 / 2018 Assignment

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A
firm produces two products, X and Y. The production technology displays the
following costs where C(i, j) represents the cost of producing I units of X and
j units of Y:

C(0, 50) = 100 C(5, 0) = 150

C(0, 100) = 210 C(10, 0) = 320

C(5, 50) = 240 C(10, 100) = 500

Does this production technology display
economies of scale?


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