connection. It will be noted that the circulation is the link between the two prod ucts sold by the newspaper-printed matter for readers and space for advertisers. The circulation is the quantity sold of one of the prod ucts and determines the quality of the other A link in the reverse direction is also possible. "/.We shall assume the absence of this reverse link, as it is generally not sufficiently important to jus- tify the complexities with its introduction into the analysis would 2700e W.M. CORDEN(1952), p. 182 Furthermore, Corden distinguishes four different types of costs: fixed costs of the plant, buildings and equipment, costs concerning the editorial, costs that vary with circulation, and the costs of advertising. The copy price is assumed to be fixed, and editorial quality increases both, the demand for copies and costs. Total average costs are assumed to fall with increasing circulation. Corden, therefore considers economies of scale in the newspaper production The results from his analysis are as follows: At first two products are identi- fied, advertising and copies. Introducing a third product, classified advertising an interrelationship of these markets is conceded. Moreover. as circulation can only be raised by increasing the editorial quality and increasing quality will lead to an increase in average costs. Increasing the circulation could, therefore, lead to losses from the reader market, if the effects of a variation in quality raises costs respectively stronger than revenues On the other side, revenues from the advertising market are directly linked to circulation. And the higher the circulation the higher the revenues from adver tising markets. Nevertheless, the advertising space and, therefore, revenues from dvertising markets are assumed to increase less than proportionally with in- creasing circulation. Furthermore, costs for advertising vary proportionally withconnection: “It will be noted that the circulation is the link between the two prod￾ucts sold by the newspaper–printed matter for readers and space for advertisers. The circulation is the quantity sold of one of the prod￾ucts and determines the quality of the other. A link in the reverse direction is also possible.” [. . . ] “We shall assume the absence of this reverse link, as it is generally not sufficiently important to jus￾tify the complexities with its introduction into the analysis would involve.” W.M. Corden (1952), p. 182 Furthermore, Corden distinguishes four different types of costs: fixed costs of the plant, buildings and equipment, costs concerning the editorial, costs that vary with circulation, and the costs of advertising. The copy price is assumed to be fixed, and editorial quality increases both, the demand for copies and costs. Total average costs are assumed to fall with increasing circulation. Corden, therefore, considers economies of scale in the newspaper production. The results from his analysis are as follows: At first two products are identi- fied, advertising and copies. Introducing a third product, classified advertising, an interrelationship of these markets is conceded. Moreover, as circulation can only be raised by increasing the editorial quality and increasing quality will lead to an increase in average costs. Increasing the circulation could, therefore, lead to losses from the reader market, if the effects of a variation in quality raises costs respectively stronger than revenues. On the other side, revenues from the advertising market are directly linked to circulation. And the higher the circulation the higher the revenues from adver￾tising markets. Nevertheless, the advertising space and, therefore, revenues from advertising markets are assumed to increase less than proportionally with in￾creasing circulation.4 Furthermore, costs for advertising vary proportionally with 7