Suppose the economy of a large nation has a defense industry, a banking industry, and a pharmaceutical industry. 1-unit output of defense requires 0.6 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals. 1-unit output of banking requires 0.1 inputs of defense, 0.4 inputs of banking, and 0.5 inputs of pharmaceuticals. 1-unit output of pharmaceuticals requires 0.1 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals. If the nation wants to have surpluses of 106 units of defense production, 243 units of banking production, and 216 units of pharmaceutical production, find the gross production of each industry.
Suppose the economy of a large nation has a defense industry, a banking industry, and a pharmaceutical industry. 1-unit output of defense requires 0.6 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals. 1-unit output of banking requires 0.1 inputs of defense, 0.4 inputs of banking, and 0.5 inputs of pharmaceuticals. 1-unit output of pharmaceuticals requires 0.1 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals. If the nation wants to have surpluses of 106 units of defense production, 243 units of banking production, and 216 units of pharmaceutical production, find the gross production of each industry.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Suppose the economy of a large nation has a defense industry, a banking industry, and a
pharmaceutical industry. 1-unit output of defense requires 0.6 inputs of defense, 0.2 inputs of
banking, and 0.2 inputs of pharmaceuticals. 1-unit output of banking requires 0.1 inputs of
defense, 0.4 inputs of banking, and 0.5 inputs of pharmaceuticals. 1-unit output of pharmaceuticals
requires 0.1 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals.
If the nation wants to have surpluses of 106 units of defense production, 243 units of banking
production, and 216 units of pharmaceutical production, find the gross production of each
industry.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education