A two sector economy has the following input-output technical matrix R S 0.3 0.5 R 0.4 0.6 The final demand for the next year is estimated as sh 60 million for sector R and sh 90 million for sector S. Determine (i) Total production from each sector in order to satisfy both intermediate and final demand. (ii) Total worth of primary inputs for the production level in (i) (iii) Account for the usage of sector R output (iv) Account for the sources of sector Q input

A two sector economy has the following input-output technical matrix R S 0.3 0.5 R 0.4 0.6 The final demand for the next year is estimated as sh 60 million for sector R and sh 90 million for sector S. Determine (i) Total production from each sector in order to satisfy both intermediate and final demand. (ii) Total worth of primary inputs for the production level in (i) (iii) Account for the usage of sector R output (iv) Account for the sources of sector Q input

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.6P

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