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JOINT PRODUCT DECISIONS, THE FIXED PROPORTIONS CASE: A NOTE
Author(s) -
Amey Lloyd R.
Publication year - 1984
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1984.tb00750.x
Subject(s) - joint (building) , production (economics) , product (mathematics) , marginal revenue , revenue , economics , marginal cost , marginal product , microeconomics , econometrics , mathematics , engineering , finance , architectural engineering , geometry
The purpose of this note is to draw attention to a misleading conclusion in the literature, that in determining the optimal rate of joint production and the optimal quantities of joint products to be finished and sold, the joint costs are implicitly shared in proportion to the respective marginal revenues. This conclusion applies only to a special case which is not typical of most joint production processes.