by-product pricing

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Setting the price for by-products in order to make the price of the main product more competitive. For example, in producing processed meats, chemicals, or oil there are often by-products, which – if they had to be disposed of – would make the main product uncompetitive. The producer therefore attempts to sell these by-products at the best possible price in order to keep the main product competitive.

Subjects: Business and Management.

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