The economy of a developing nation is based on agricultural

The economy of a developing nation is based on agricultural products, steel, and coal. An output of one ton of agricultural products required an input of 0.1 tons of agricultural products, 0.02 tons of steel, and 0.05 tons of coal. As output of one ton of steel requires an input of 0.01 tons of agricultural products, 0.13 tons of steel, and 0.18 tons of coal. An output of one ton of coal requires an input of 0.01 tons of agricultural products, 0.20 tons of steel, and 0.05 tons of coal. Write the technological matrix for this economy. Find the necessary gross productions to provide surpluses of 2350 tons of agricultural products, 4551 tons of steel, and 911 tons of coal.

Make sure you write down the technology matrix A.

Solution

The economy of a developing nation is based on agricultural products, steel, and coal. An output of one ton of agricultural products required an input of 0.1 tons of agricultural products, 0.02 tons of steel, and 0.05 tons of coal. As output of one ton of steel requires an input of 0.01 tons of agricultural products, 0.13 tons of steel, and 0.18 tons of coal. An output of one ton of coal requires an input of 0.01 tons of agricultural products, 0.20 tons of steel, and 0.05 tons of coal. Write the technological matrix for this economy