Economies of Scope.pdf

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Part 3B. Cost of Joint Production產品多元化之聯合生產成本„Joint Production„Economies of Scope1Perloff (2011, 2e), Section Joint Production„Joint Production (聯合生產)Few firms produce only a single assumption of single-product is assumed only for a firm produces two or more goods, the cost of one product may depend on the output levels of other products of the Economies of Scope„Economies of Scope(SC, 範疇經濟)⎯Situation in which it is cheapterto produce goods jointly than separately. (Panzar& Willig, 1977 QJE, 1981 AER)3 „A Measure of SCC(q,0)+C(0,q)−C(q,q)1212SC=C(q,q)12where stC(q,0) ≡the cost of producing qunits of the 111 good by itselfndC(0, q) ≡the cost of producing qunits of the 222good by itselfC(q, q) ≡the cost of producing both goods together12> Economies of Scope⇒SC= 0, No Economies of Scope< Diseconomies of Scope4 „Production „Figure: Joint ProductionPossibility Frontier (PPF, 最大生產可能曲線)⎯The maximumamount of outputs that can be produced from a fixed amount of bows away from the origin if there are economies of (2011, 2e), Figure , p.