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Calculation of Average Costs with Economies of Scope Baby Supplies

question 109

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Calculation of Average Costs with Economies of Scope Baby Supplies is considering a merger with Tot Toy Stores.Baby's total operating costs of producing services are $450,000 for sales volume of $2.15 million.Tot's total operating costs of producing services are $250,000 for a sales volume (JP) of $975,000.Calculate the average cost of production for the Baby and Tot Toy firms,respectively.

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