The discipline is Managerial Economics. Please answer the following:
Answer the following questions:
1) Explain the relative advantages and disadvantages of each of the following:
a.) time-series and cross-section studies for estimating cost functions in the short run and long run.
b.) using a polynomial cost function compared with a power function for a long-run analysis.
2) Explain and provide an example of how the a firm might gain economies of scope without gaining economies of scale.
