Talk:Joint product pricing
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Dubious graph
[edit]The graph in this unsourced article, which has been here since the article's inception on 28 June 2003, looks dubious to me and is probably original research that should be deleted:
with commentary
- to determine optimal pricing for joint products produced in variable proportions, you find the intersection point of marginal revenue (product A) with the joint marginal cost curve. You then extend that quantity, up to the demand curve for product A, and that gives you the profit maximizing price for product A (point Pa in the diagram). You do the same for product B, yielding price point Pb1.
But if we're producing A at the rightmost green dot, then the MC for B is not as shown but rather should be the MC curve from the rightmost green dot onward.
I propose to delete the graph and accompanying discussion, along with the nonsensical passage In fact, it might even be possible to construct separate cost functions.. Duoduoduo (talk) 18:55, 7 August 2013 (UTC)