Question 5: Applications In Economics als to Consider an cconomy with four sectors, Agriculture, Chemicals & Métals, Fucis & Power, and Machinery. Agriculture sells 40% of its output to Chemicals, 50% to Fuels and retains the rest. Chemicals sells 20% of its output to Agriculture, 20% of its output Fuels, 50% to Machinery and retains the rest. Fuels sells 80% of its output to Chemicals and 10% to Machinery and retains the rest. Machinery sells 20% to Agriculturc, 20% to Chemicals and 40% to Fucls and retains the rest. (i) Construct the cxchange table for this cconomy. matrix the (ii) Develop a system of cquations that leads to prices at which cach scctor's income matches its expenses. Then write the augmented matrix that can be row reduced to find these prices. Finally, find a set of equilibrium prices when the price for the Machinery output is 100 units.

Question 5: Applications In Economics als to Consider an cconomy with four sectors, Agriculture, Chemicals & Métals, Fucis & Power, and Machinery. Agriculture sells 40% of its output to Chemicals, 50% to Fuels and retains the rest. Chemicals sells 20% of its output to Agriculture, 20% of its output Fuels, 50% to Machinery and retains the rest. Fuels sells 80% of its output to Chemicals and 10% to Machinery and retains the rest. Machinery sells 20% to Agriculturc, 20% to Chemicals and 40% to Fucls and retains the rest. (i) Construct the cxchange table for this cconomy. matrix the (ii) Develop a system of cquations that leads to prices at which cach scctor's income matches its expenses. Then write the augmented matrix that can be row reduced to find these prices. Finally, find a set of equilibrium prices when the price for the Machinery output is 100 units.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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