By how many units should each sector increase production?
Let
$$ (I-A)^{-1}=\left[\begin{array}{lll} 1.1 & 0.4 & 0 \\ 0.1 & 1.9 & 0.3 \\ 0 & 0 & 1.7 \end{array}\right] $$
and assume that the external demand for the products in each of the sectors increases by 1 unit. By how many units should each sector increase production?
Homework Answers
Consider a simple economy consisting of three sectors: food, clothing, and shelter. The production of 1...
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1. An economy has two sectors: manufacturing and services. One unit of output from manufacturing requires inputs of 0.1 units from manufacturing and 0.8 units from ser- vices. One unit of output fro...
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Required: a. How many units of each product should be produced each period? b. A local...
Required: a. How many units of each product should be produced
each period?
b. A local engineering firm has suggested to Clarke that it
might be able to increase the capacity on the machine. What is the
maximum Clarke would be willing to pay for an increase of twenty
(20) machine hours?
c. Suppose the maximum capacity on the machine was 354,000 hours
(instead of 618,000 hours). What is the maximum Clarke would be
willing to pay for an increase...
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1 (Specific Factor Model, Chapter 3) In the simple" version of the specific factor model, there...
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Behind the Supply Curve: Inputs and Costs - End of Chapter Problem 5. An increase in...
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1. A manufacturer produces three products, A, B, and C. The profits for each unit of...
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5. Improvements in technology that reduce production costs cause the _____ curve to shift to the _____, indicating a(n)...
5. Improvements in technology that reduce production costs cause the _____ curve to shift to the _____, indicating a(n) _____ in the amount _____ at each price point.A.demand; right; increase; demandedB.supply; left; decrease; suppliedC.demand; left; decrease; demandedD.supply; right; increase; supplied6. Assume a farmer’s land is equally productive in growing corn or potatoes and is currently producing both. If the price of corn increases but the price of potatoes does not change, the farm’s supply curve for potatoes will:A.shift to the...
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1. An economy has two sectors: manufacturing and services. One unit of output from manufacturing requires inputs of 0.1 units from manufacturing and 0.8 units from ser- vices. One unit of output from services requires inputs of 0.4 units from manufacturing and 0.2 units from services. The final demand is 4 units of manufacturing and 2 units of services (e) (3 points) W which sector corresponds to each column. rite down the consumption matrix for the economy. Clearly indicate (b)...
Required: a. How many units of each product should be produced
each period?
b. A local engineering firm has suggested to Clarke that it
might be able to increase the capacity on the machine. What is the
maximum Clarke would be willing to pay for an increase of twenty
(20) machine hours?
c. Suppose the maximum capacity on the machine was 354,000 hours
(instead of 618,000 hours). What is the maximum Clarke would be
willing to pay for an increase...
Unit of Pollution Marginal Cost of damage Consider a scenario where there are 15 total units of pollution occurring within a given area. The per unit cost of damage increases by $3 each time pollution increases as the pollution gets ever closer to the absorptive capacity of the environment (see the table to the left). There are three sectors in this economy each contributing 5 units of pollution. Each firm could conceivably clean up this pollution; however due to differences...
Behind the Supply Curve: Inputs and Costs - End of Chapter Problem 5. An increase in labor productivity means that each worker can produce more output. Recent data on productivity show that labor productivity in the U.S. nonfarm business sector grew by 1.7% between 1970 and 1999, by 2.6% between 2000 and 2009, and by 1.1% between 2010 and 2015. MC ATC c. When productivity growth is positive, what happens to the marginal cost curve and the average total cost...
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