Consider an economy divided into an agricultural sector (A) and an industrial sector (S). To produce one unit in sector A requires 1/6 unit from A and 1/4 unit from S. To produce one unit in sector S requires 1/4 unit from A and 1/4 units from S. Suppose final demands in each of the two sectors are 50 units. Let x and y denote total production in industries A and S respectively. What is the Leontief system for this economy

Consider an economy divided into an agricultural sector (A) and an industrial sector (S). To produce one unit in sector A requires 1/6 unit from A and 1/4 unit from S. To produce one unit in sector S requires 1/4 unit from A and 1/4 units from S. Suppose final demands in each of the two sectors are 50 units. Let x and y denote total production in industries A and S respectively. What is the Leontief system for this economy

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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