Production of Multiple Products
A company often produces several products, which gives rise to new issues compared to the situation in which only one product is being produced. If, for example, there are limited amounts of input at disposal, then the producer needs to decide how this input should be allocated between the various products. Multiple products can also give rise to economic issues concerning production in another way. It may be the case that the production of the multiple products results in advantages, e.g. a kind of synergy. Producing two products at the same company can also give rise to advantages regarding cost savings when compared to separate production.