Question: The Q&H Company produces a number of products including shampoo, q_s, and toothpaste, q_r.

The cost functions for these products are given by:

C(q_s , 0) = 4 + q²_s C(0, q_r) = 4 + _r C(q_s , q_r) = 7 + q²_s + _r

a. Does the production of shampoo exhibit economies of scale? Explain reasoning.

b. Does the production of toothpaste exhibit economies of scale? Explain reasoning.

c. Are there economies of scope associate3d with producing shampoo and toothpaste? Explain reasoning.