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Joint Product Pricing

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Joint Product Pricing. The Frank Boulger Mining Company operates the Million Dollar Mine in Leadville, Colorado. Each ton of mined ore yields one ounce of silver and one pound of lead in a fixed 1:1 ratio. Marginal costs are $8 per ton of ore mined.
The demand and marginal revenue curves for silver are:
Joint Product Pricing. The Frank Boulger Mining Company operates the Million Dollar Mine in Leadville, Colorado. Each ton of mined ore yields one ounce of silver and one pound of lead in a fixed 1:1 ratio. Marginal costs are $8 per ton of ore mined. The demand and marginal revenue curves for silver are:

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where QS is ounces of silver and QL is pou...

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