A Numerical Example:

• C(Q1, Q2) = 90 - 2Q1Q2 + (Q1 )2 + (Q2 )2

• Cost Complementarity?

Yes, since a = -2 < 0

MC1(Q1, Q2) = -2Q2 + 2Q1

• Economies of Scope?

Yes, since 90 > -2Q1Q2

• Implications for Merger?

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