The solution for an optimum combination of joint products produced in variable proportions requires a point of tangency between the ____.
A) isocost and marginal revenue curves
B) isocost and isorevenue curves
C) isorevenue and marginal cost curves
D) marginal cost and marginal revenue curves
E) none of the above

Question

Quizplus · Accepted Answer

The optimal combination of joint products produced in variable proportions is found at the point of tangency between the isocost and isorevenue curves. This point represents the combination where the cost of production is minimized for a given level of revenue, or alternatively, the revenue is maximized for a given cost level.

The Solution for an Optimum Combination of Joint Products Produced