ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 10% of its output to Mining, 50% to Energy, 15% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 20% to Lumber, 30% to Transportation, and retains the rest. Transportation sells 25% of its output to Mining, 20% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber If PT = $100, then PM = $. PL = $, and PE = $. (Round to the nearest dollar as needed.) Energy Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM, PL, PE, and PT,…arrow_forwardam. 125.arrow_forwardSee photoarrow_forward
- What are the benefits and risks associated with just-in-time delivery of inputs to factories? Why do computer chip factories run continuously rather than maintaining some spare capacity? What is the underling economic concept that explains why 80 percent of the world's most advanced computer chips are produced by a single firm, Taiwan Semiconductor, rather than by many small firms? Just-in-time delivery of inputs to factories has benefits and risks. Identify which of the following are true. You may select more than one answer. Instructions: In order to receive full credit, you must make a selection for each option. For correct answers), click the box once to place a check mark. For incorrect answerts), click the option twice to empty the box. 5 33 It eliminates the costs associated with maintaining inventories of inputs If a single type of input is not delivered on time, a factory production line will have to be shut down. Inventories are easier to track and manage 33 Firms can more…arrow_forwardA library has a bookshelf to store books on that is 55 meters long. A children's book will take up 55 centimeters, and a dictionary will take up 1010 centimeters.arrow_forwardLet's think of an economy with two industries and these industries be water and electricity companies. Electricity company, electricity using water and electricity; The water company also produces water using water and electricity. With the output of both companies measured in TL, 0.1 TL electricity and 0.1 TL water is required to produce 1 TL of electricity, 0.8 TL electricity and 0.2 TL water to produce 1 TL water. As the demand of the foreign sector is 18.000 TL electricity and 12.000 TL water production, X1 = total output of the electricity company, X2 = total output of the water company, electricity and waterCalculate the total output required for the companies to meet both external and internal demand by any matrix method.arrow_forward
- A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. Suppose the sushi bar’s revenue from the first year is $120,000. What is the chef’s economics profit? 14,000 -14,000 66,000 68,000arrow_forwardQuestion 1: A company makes two types of calculators, one that uses batteries and one that is solar powered. The production of each battery-operated calculator involves 1 hour on Machine A, 2 hours on Machine B, and 1 hour on Machine C. The production of each solar powered calculator involves 2 hours on Machine A, 1 hour on Machine B, and 1 hour on Machine C. The company can use Machine A for a total of 14 hours, Machine B for a total of 20 hours, and Machine C for a total of 9 hours. If the company can earn a profit of $3 for each battery powered calculator and $8 for each solar powered calculator, how many of each should it produce to maximize profit? What is the maximum profit it can earn? Question 2arrow_forward120.) Which of the following is not economic investment? The purchase of a drill press by the Ajax Manufacturing Company. Construction of a small heating and air conditioning repair facility. The purchase of 100 shares of AT&T by a retired business executive. The building of a new assembly line for Ford Motor Company.arrow_forward
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