When two products are produced in the same production process, such relationship is called as?

VAE-0015

QUESTION

When two products are produced in the same production process, such relationship is called as?

OPTIONS

(A) Competitive
(B) Complementary
(C) Supplementary
(D) Joint

ANSWER

(D) Joint

EXPLANATION

When two products arise from the same production process, they are described as joint products or joint enterprises. Competitive enterprises compete for the same scarce resources, complementary enterprises enhance one another, and supplementary enterprises use otherwise idle resources without materially affecting the main enterprise. Therefore, option (D), joint, is correct.

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