Which of the following cost functions exhibits economies of scope when three (3) units of good one and two (2) units of good two are produced?
A. C = 5 + Q1Q2 + Q12Q22.
B. C = 50 ? 5Q1Q2 + 0.5Q12 + Q22.
C. C = 15 + 5Q1Q2 + 2Q1 + 4Q2.
D. C = 10 + 4Q1Q2 + Q12 + Q22.
Answer: B
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