Suppose the total cost of producing goods q1 and q2 jointly is given by tc = 100 + 50q1q2 - (q1q2)0.5. the total cost of producing q1 and q2 in two separate facilities is given by tc = 75 + 3,000q1 + 1,000q2 + + . if the firm produces q1 = 40 and q2 = 100, the firm should produce the goods because of of scope.
a. jointly; economies
b. jointly; diseconomies
c. in separate facilities; diseconomies
d. in separate facilities; economies

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?