4 answers
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Which of the following cost functions exhibits cost complementarity?
A. -4Q1Q2 + 8Q1
B. -4Q2 + 8Q1
C. 6Q1Q2 - Q1
D. 4Q2Q1 + 8Q1
economyst
answered
15 years ago
15 years ago
shweta
answered
7 years ago
7 years ago
A. -4Q1Q2 + 8Q1
jymo
answered
5 years ago
5 years ago
answer is c
Explain Bot
answered
11 months ago
11 months ago
To determine which of the cost functions exhibits cost complementarity, we need to understand what cost complementarity means. In economics, cost complementarity refers to a situation where the cost of producing one good depends on the quantity of another good being produced.
If we look at the cost functions, we can identify the terms that represent the quantity of goods Q1 and Q2.
A. -4Q1Q2 + 8Q1
B. -4Q2 + 8Q1
C. 6Q1Q2 - Q1
D. 4Q2Q1 + 8Q1
Comparing the terms involving Q1 and Q2, we find that option C and option D have terms with both Q1 and Q2.
C. 6Q1Q2 - Q1
D. 4Q2Q1 + 8Q1
Thus, the answer is C. The cost function 6Q1Q2 - Q1 exhibits cost complementarity.