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Difficulty: EasyTypes of Supply

A poultry farmer in Ogun State raises birds primarily for meat production. In the process, poultry manure and feathers are automatically produced alongside chicken meat. Which type of supply is illustrated by this production process?

  1. Joint supplyAnswer
  2. B
    Competitive supply
  3. C
    Composite supply
  4. D
    Derived supply

Answer

Joint supply
Joint supply occurs when two or more goods are produced together from a single main source or activity. In this scenario, producing chicken meat naturally yields feathers and manure as co-products.

Step-by-Step Solution

1
Analyze the production relationship in the scenario
Chicken meat, poultry manure, and feathers are all generated simultaneously from the single process of raising poultry.
Identifying whether the products are produced together or in competition determines the type of supply.
2
Classify the type of supply based on economic definitions
Products that are inherently produced together from the same origin represent joint (or complementary) supply.
An increase in poultry farming for meat automatically increases the output of manure and feathers.

Key Concept

Joint (Complementary) Supply
Estimated Time:45s
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Topics

Types of Supply

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