ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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.
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