Suppose a primitive economy consists of two industries, farm products and farm machinery. Suppose also that its technology matrix is represented by the matrix shown below. P M 0.6 0.4 A = Products 0.4 0.2 Machinery If surpluses of 76 units of farm products and 10 units of farm machinery are desired, find the gross production of each industry. products units machinery units

Suppose a primitive economy consists of two industries, farm products and farm machinery. Suppose also that its technology matrix is represented by the matrix shown below. P M 0.6 0.4 A = Products 0.4 0.2 Machinery If surpluses of 76 units of farm products and 10 units of farm machinery are desired, find the gross production of each industry. products units machinery units

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 22CTQ: Can you think of any examples of free goods, that is, goods or services that are not scarce?

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