Production of Multiple Products

Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

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.

Keywords

Lagrange Multiplier Production Function Marginal Product Optimal Production Multiple Input 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Department of Resource Economics and Food PolicyUniversity of CopenhagenFrederiksbergDenmark

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