We study the joint cost allocation based on the book profit producing power of the output through the A-S price mechanism. We show what part of the A-S book profit is allocated to the joint cost and what part is allocated to the variable total book pr...
We study the joint cost allocation based on the book profit producing power of the output through the A-S price mechanism. We show what part of the A-S book profit is allocated to the joint cost and what part is allocated to the variable total book profit of the short-run book profit function. Also we compare some other classical joint cost allocation methods with this A-S price method.