Suppose the economy of an underdeveloped country has an agricultural industry and an oil industry. Each unit of agricultural output requires 0.4 unit of agricultural input and 0.2 unit of oil products input. Each unit of oil products output requires 0.2 unit of agricultural input and 0.1 unit of oil products input. (Hint: Write the technology matrix first) . If surpluses of 0 units of agricultural product and 610 units of oil products are desired, find the gross production of each industry. _____Agricultural industry gross production _____ Oil products gross production. _____Find the additional production needed from Agricultural industry for one more unit of oil product surplus. _____ Find the additional production needed from Oil industry for one more unit of oil product surplus.
Suppose the economy of an underdeveloped country has an agricultural industry and an oil industry. Each unit of agricultural output requires 0.4 unit of agricultural input and 0.2 unit of oil products input. Each unit of oil products output requires 0.2 unit of agricultural input and 0.1 unit of oil products input. (Hint: Write the technology matrix first) .
If surpluses of 0 units of agricultural product and 610 units of oil products are desired, find the gross production of each industry.
_____Agricultural industry gross production
_____ Oil products gross production.
_____Find the additional production needed from Agricultural industry for one more unit of oil product surplus.
_____ Find the additional production needed from Oil industry for one more unit of oil product surplus.
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