5.An economy has two industries: services and manufacturing. To produce $1 ofservices requires 20¢ of services and 40¢ of manufacturing. To produce $1 of manufacturingrequires 30c of services and 10¢ of manufacturing.(a) If there is an external demand for $900 of services and $1500 of manufacturing, how muchof each industry should be produced to meet it?(b) Find the internal consumption when demand is met.(c) Which industries, if any, are profitable.

Let service be denoted as S and manufacturing as 'M' Given , 1$ of S requires = 0.2$ of S + 0.4 M…

5. An economy has two industries: services and manufacturing. To produce $1 of services requires 20c of services and 40c of manufacturing. To produce $1 of manufacturing requires 30c of services and 10c of manufacturing. (a) If there is an external demand for $900 of services and $1500 of manufacturing, how much of each industry should be produced to meet it? (b) Find the internal consumption when demand is met. fitoble

5. An economy has two industries: services and manufacturing. To produce $1 of services requires 20c of services and 40c of manufacturing. To produce $1 of manufacturing requires 30c of services and 10c of manufacturing. (a) If there is an external demand for $900 of services and $1500 of manufacturing, how much of each industry should be produced to meet it? (b) Find the internal consumption when demand is met. fitoble

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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