Q. A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
Q. industries currently produce the goods q1 also q2 separately. Their cost functions are C(q1) = 25+ q1 also C(q2) = 35+ q2. By merging, they can produce the 2 goods jointly with costs described by the function C(q1, q2) = 45 + q1 + q2. Are there scope economies in this case that would justify the merger?