Types of Product-Product relationship (Enterprise relationship)
•Farm commodities bear several relationship to one another. These basic product relationship are:
1. Joint products:
•Products that are produced through single production process and the production of one without another is not possible.
•These products are obtained in fixed proportions.
•If a given quantity of one product is produced, the quantity of other products is fixed by nature.
• Joint products are produced through a single production function and for the purpose of analysis they may be treated as single product.
•All farm commodities are mostly joint products.
•E.g. wheat and straw, groundnut and haulms, cotton seed and lint, cattle and manure, butter and milk etc.
where, y1 and y2 are two joint products.
• 2. Complementary enterprises:
•when change in level of production of one, another also changes in the same direction. i.e. when resource held constant the increase in the level of output of one product also increases in the level of another output.
•Two products are complementary when increase in output of one product, using the fixed resources, also increases the output of the second product.
•Example: Leguminous crops increases the fertility status of soil, which is beneficial for production of wheat on a piece of land, termed as complementary products.
where, y1 and y2 are two complementary products.
3. Supplementary enterprises:
•When increase or decrease in the output of one product does not affect the production level of the other product.
•Two products are supplementary when an increase in output of one product, holding the resources constant in quantity, has no effect on the level of output of the second product.
• In other words, with the same resources, the output of one product can be increased with neither a gain nor a sacrifice in the other product.
•Supplementary products use the idle resources.
•On small farms keeping a few milk animals or poultry birds may be supplementary to the fodder enterprises
where, y1 and y2 are two supplementary products.
4. Competitive enterprises:
•when increase or decrease in the production of one product, with resource held constant results in the decrease in the output of the other product.
•Two products are competitive in the use of given resources if an increase in the output of one product involves a reduction in the output of the other product.
Example: weed and rice competing in same field.
where, y1 and y2 are two competing products.

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