C(Q1, Q2) = 3,500 -
205Q1Q2 - (Q1)2 +
(Q2)2
A. What do you need to know from the equation above to see if
there are Cost Complementarity? Are there Cost Complementarity?
B. What is MC1(Q1,Q2) ?
C. What is MC2(Q1,Q2) ?
D. Are there economies of scope? Explain.
E. What are the implications for a merger?