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Joint Costs in the Chemical Industry

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  • T. J. Kreps

Abstract

I. Joint Costs a phenomenon of production; costs as flows; joint means joined, 416. — II. Joint costs with invariable proportions, 419. — Bases of cost apportionment, 420. — Relative demand schedules, 421. — Method of addition and subtraction, 424. — Arbitrary methods of allocation, 425. — Repercussions on the structure of industry, 427. — Cartellization, 429.—Vertical and lateral integration, 431. — III. Joint costs with variable proportions, 433. — Manipulating the variables of chemical equilibria, 436. — By varying concentration, 437. — Temperature, 436. — Pressure, 440. — And state of aggregation of the components, 441. — Mathematical predictability of variation, 444. — Research laboratory as systematizer of march of invention and nerve centre of control of production and marketing, 445. — IV. Nature and scope of joint costs, 448. — Element of technological compulsion vs. element of profit-maximizing variability, 449. — The problem of valuation, 450. — All the factors may vary discontinuously, 452. — Joint costs and overhead costs, 455; and decreasing costs, 459. — Conclusion, 460.

Suggested Citation

  • T. J. Kreps, 1930. "Joint Costs in the Chemical Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 44(3), pages 416-461.
    • Handle: RePEc:oup:qjecon:v:44:y:1930:i:3:p:416-461.
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    File URL: http://hdl.handle.net/10.2307/1885791
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    Cited by:

    1. Shastitko, Andrey & Shastitko, Anastasia, 2015. "Markets of joint products: A theoretical model and policy implications," Russian Journal of Economics, Elsevier, vol. 1(2), pages 199-216.
    2. Jordan, Brett, 2018. "Economics literature on joint production of minerals: A survey," Resources Policy, Elsevier, vol. 55(C), pages 20-28.

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