Product- Product Relationships

• The goal of output-output relationship is profit maximization.
• Under this, inputs are kept constant and products (Outputs) are varied.
• This relationship guides the producer in deciding what to produce and how much to produce.
• This relationship is explained by the principle of product satisfaction and law of equimarginal returns.
• This relationship is concerned with the determination of optimum combination of product.
• The choice indicators are substitution ratio and price ratio.