Problem

Three-Sector Economy In an economic system, each of three industries depends on the others...

Three-Sector Economy In an economic system, each of three industries depends on the others for raw materials. To make $1 worth of processed wood requires 30 ¢ worth of wood, 20 ¢ steel, and 10 ¢ coal. To make $1 worth of steel requires no wood, 30 ¢ steel, and 20 ¢ coal. To make $1 worth of coal requires 10 ¢ wood, 20 ¢ steel, and 5 ¢ coal. To allow for $1 worth of consumption in wood, $4 consumption in steel, and $2 consumption in coal, what levels of production for wood, steel, and coal are required?

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Solutions For Problems in Chapter 2.6