this is the full question, not incomplete 4. Consider the following input-output table for a certain economy consisting of threesectors (all units measured in dollars):Farm Machinery Farm Animals Labor Hours9,000200,00014,000Farm MachineryFarm Animals13,50031,000175,0007,20050,000130,0006,000Labor Hours1,200Total Output450,000(a) Find the technology matrix associated with this economy. Round cach entry to 3decimal places.(b) The matrix (I – A)-1 is given by[3.2 2.4 1.2](I – A)-! =1.1 2.2%3D0.1 0.7 1.5What production levels are necessary in order to meet a 1,000 unit demand inboth farm machinery and farm animals? You may assume that there is no externaldemand for labor hours at this time.

We are going to solve for technology matrix in part a) and solve for feasible production level in…

4. Consider the following input-output table for a certain economy consisting of three sectors (all units measured in dollars): Farm Machinery Farm Animals Labor Hours 200,000 6,000 1,200 9,000 13,500 14,000 Farm Machinery Farm Animals Labor Hours Total Output 7,200 50,000 31,000 450,000 175,000 130,000 (a) Find the technology matrix associated with this economy. Round cach entry to 3 decimal places. (b) The matrix (I-A)-1 is given by [3.2 2.4 1.2] (I – A)- =0 1.1 2.2 0.1 0.7 1.5 What production levels are necessary in order to meet a 1,000 unit demand in both farm machinery and farm animals? You may assume that there is no external demand for labor hours at this time.

4. Consider the following input-output table for a certain economy consisting of three sectors (all units measured in dollars): Farm Machinery Farm Animals Labor Hours 200,000 6,000 1,200 9,000 13,500 14,000 Farm Machinery Farm Animals Labor Hours Total Output 7,200 50,000 31,000 450,000 175,000 130,000 (a) Find the technology matrix associated with this economy. Round cach entry to 3 decimal places. (b) The matrix (I-A)-1 is given by [3.2 2.4 1.2] (I – A)- =0 1.1 2.2 0.1 0.7 1.5 What production levels are necessary in order to meet a 1,000 unit demand in both farm machinery and farm animals? You may assume that there is no external demand for labor hours at this time.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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