Homework Help: Economics

Posted by Salman on Friday, October 16, 2009 at 1:05pm.

A computer company produces hardware and software using the same facility. (i.e., with the same L and K). The total cost of producing software (S) and hardware (H) equals:
TC = a S + b H - d S H,
where a, b, and d are positive constants. Are there economies of scope in the production of H and S? Explain why or why not.

Economics - economyst, Friday, October 16, 2009 at 1:43pm
see my earlier posts to this very question.

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