What is a common offer?
When multiple products are derived from the same source and for the same load it is said that the products are in the joint. The concept of a common offer is an economic concept concerning supply and demand. Products that are derived from a single source are connected together for supply purposes. Increasing the supply of one product requires an increase in the delivery of another. Depending on market conditions and basic demand for each product, this relationship may have a positive or negative effect on the price.
The joint delivery exists when two or more products come from the same source. For example, a farmer who raises sheep can use sheep for wool, meat and sheep skin. Each of these products has different markets, but comes from one animal. These products can only be in the joint if they can be made simultaneously. If one product is made only instead of another, there is no parallel power relationship.
Economic theory is Always concerns supply and demand. Experts watch how to increase orReducing the product supply is the demand for product change and leads to a change in price. An example can be shown with oil delivery. The perception of the availability or supply of oil can cause temporary increase in demand, especially if people feel lack and increase the price of gasoline.
products that are in the delivery of joints cannot usually be analyzed separately. Since multiple products come from one source, the increase in one will increase the delivery of the other. In the example of sheep breeding, the increase in wool supply will probably also increase the supply of mutton in an effective operation. However, the demand for these two products is not always the same.
If the sheep farmer responds to the market demand for a mutton, it will also flood the market for the wool. Thvlna E does not have to be in particular demand, so the next offer will reduce the prices of the wave. Analysts carefully monitor the products in the joint offer because investments in one may be significantly influencedLocated by what happens to another.
Another important problem that includes products in a common offer is to allocate expenditure. Because both products are derived from the same source, it is often difficult to find out how to divide the expenses. In the case of two products, it is usually not possible to simply divide the expenses into the center, because one product is usually sold for more than the other. The same division will artificially blow or inflate profits on one or the other product. Similarly accidental cost allocation will bring artificial results.