If a firm is producing a joint product with variable proportions, if the price of one of the joint products changes, to maximize profits, managers must adjust both the total production of the jointly produced product and the products' proportions.

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This is because the change in price of one joint product affects the marginal revenue and cost of both joint products, and thus, to maximize profits, managers need to adjust both the total production and the product proportions.

If a Firm Is Producing a Joint Product with Variable