Product-product relationship
•Product-product relationship deals with resource allocation among competing enterprises.
•The goal of product-product relationship is profit maximization.
•Under product-product relationship, inputs are kept constant while products (outputs) are varied.
• This relationship guides the producer in deciding ‘what to produce’?
•This relationship is explained by principle of product substitution and law of equimarginal returns.
•The relationship is concerned with the determination of optimum combination of products.
• The choice indicators are Substitution ratio and price ratio.
• Algebraically it is expressed as: Y1=f (y2, y3…yn).

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