What are competitive products, complementary & supplementary products?

Ans:- (a) Products are termed competitive when an increase in one product can come about by reducing the output of the other product. In this case, the manager can expand production of one output only by diverting inputs (labor, capital etc) from one enterprise to the other e.g if we want to grow more timber in a specific area there will be a decrease in the production of grasses.

Complimentary products

Two products are complimentary if the increase in one product cause an increase in the second product when the total amount of inputs used on the two are held constant. In this case, the Marginal rate of product substitute (M.R.P.S) is positive. Complimentary usually occurs when one of the products produce an input used by the other product e.g. legume in rotation with a cash crop.

The complimentary products eventually must become competitive If the products never become competitive then they are not termed complimentary but are called joint products.

Joint products

Products with result from the same product process are termed as joints products e.g. Wool and mutton, cow and cowhides, Lumbers and sawdust, firewood & timbers.

Supplementary products

If the amount of one product can be increased without increasing or decreasing the amount of the other products. Supplementary enterprises arise through time or when surplus resources are available at a given point of time e.g. small flock of chickens, regeneration from existing crop.

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