One Guy's Pizza Jointly Produces Pizzas and Calzones

question 53

Essay

One Guy's Pizza jointly produces pizzas and calzones.The joint cost function is:
C_P,C( q₁,q₂)= 4q₁ + 0.8q₂ - 1.5 ,where q₁ is the number of pizzas and q₂ is the number of calzones One Guy's Pizza produces.If One Guy produces pizzas alone,the cost function is: C_P(q₁)= 4q₁.If One Guy produces calzones alone,the cost function is:
C_C(q₂)= 0.8q₂.Calculate One Guy's degree of economies of scope if they produce 1,024 pizzas and 243 calzones.

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