What you know about Joint Supply
In full competition, we assume that
the price of one thing is totally different from the other one. But this view
is totally a predication or assumption which is totally false. There are two
types of things – alternative and complementary things. In both the category,
things have many alternative things and some-one have complementary things. In
alternative things if price increase of one thing then people start to buy
other one. In complementary things - two things are associated with each other.
There are lots of things which
supply jointly because their production sources are same or they are produce
jointly. In other words, one thing already associated with the other one
production – like wheat and grass for animals or woolen and meat etc. we divide
these thing into two parts – fix ratio or proportion and variables ratio or
proportions.
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Production
at fix ratio – this type of ratio is decided by our nature. For example if
wheat demands increase – its price increase – grass production increase – grass
price decrease.
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| Joint Supply |
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| Joint Supply |
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Production
at variable ratio – in this part, we make a change in ratio and adjust it
according to our need. For example if we require more meat then we use other
types of bhade and if we require more woolen then we use different types of
bhade.
