CHAPTER V

SOME SPECIAL PROBLEMS OF VALUATION

N the preceding discussion of value there has been
| contemplated the organisation of producing establishments
 with a view to the production of a single commodity,
and a demand for that commodity without regard to any
association of it with others for actual use by the consumer.
[t need hardly be remarked that such conditions do not by
any means cover the range of existing facts, even if they
represent any considerable part of them. This method of
procedure, however, is desirable, indeed necessary, as a
preliminary to the examination of more complex cases,
Some of the typical conditions of these less simple cases
will now be considered briefly.
First, consider the case of the simultaneous production
of two commodities in a single process of production, as
when gas and coke, mutton and wool, wheat and straw, or the
like pairs of products, are secured as the results of processes
the expenses of which are largely, if not entirely, joint expenses,
 that is, such as would remain unchanged if one of the
products should cease to be marketable. In this case, how
can we arrive at, or can we arrive at, separate determinations of
the prices of the two joint products? In many cases there are
other products besides the two chief ones, but we shall first
consider the problems introduced by the second product of
the industrial process, as if there were none but the two,
There are two points of view from which the problem
may be regarded. We may take note of the fact that the
process of production results in quantities of the two
products which bear a definite relation to each other, and
one of which cannot be changed without a corresponding