Figure 6-11
Information About Three Joint Products Follows The Cost of the Joint Process Is £140,000

question 18

Multiple Choice

Figure 6-11
Information about three joint products follows: $\begin{array}{lccc}&\text {X}&\text {Y}&\text {Z}\\\text { Anticipated production } & 12,000 \mathrm{kgs} . & 8,000 \mathrm{kgs} . & 7,000 \mathrm{kgs} . \\\text { Selling price } / \mathrm{kg} . \text { at split-off }& £ 16 & £ 26 & £ 48 \\\text { Additional processing costs } / \mathrm{kg} .\\\text { after split-off (all variable) } & £ 8 & £ 20 & £ 20\\\text { Selling price } / \mathrm{kg} . \text { after further } \\\text { processing }&£20&£40&£70 \\\end{array}$
The cost of the joint process is £140,000.
-Refer to Figure 6-11. If the firm is currently processing all three products beyond split-off, the firm's income would be

• A)£736,000.
• B)£654,000.
• C)£596,000.
• D)£514,000.

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Definitions:

Public Utilities

Companies that provide essential services such as water, electricity, and gas to the public and are often subject to regulatory oversight.

Short Run

A timeframe in economics during which at least one input (like plant size) is fixed and cannot be changed, focusing on immediate operational decisions.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes.

Marginal Revenue Curve

A graph that shows how marginal revenue varies as the quantity of output changes, typically downward sloping for firms in competitive markets.