Describe the circumstances under which a producer of joint products in fixed proportions might not sell all of one of the available joint products at the profit-maximizing level of operations.
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As long as production is sufficient to provide 8,750 units of product A, 8,750 units of product B are also produced without any additional cost. With an effective marginal cost of zero for product B, its contribution to firm profits is maximized by setting the marginal revenue of product B equal to zero (its effective marginal cost)
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