Question

A farmer finds that when he produces more corn, he also has more cornstalks that he can sell as decorations. To the farmer, corn and cornstalks are:_______. a. unrelated goods. b. complements in production. c. substitutes in production. d. inferior goods.

Answer 1

Answer:

b. complements in production

Explanation:

Cornstalk would be a by product of corn production. Just as bagasse is a by product when sugarcane is used for sugar manufacture, corn stalk should be regarded as a by product.

Compliments in production refer to those goods which are produced at the same time using the same set of resources.

Thus, both corn and cornstalk utilize the same resources for production and hence would be termed as compliments in production.