A company produces three products which are interdependent. These are products A, B and C. The flow of inputs and outputs between the products is represented in the table below. Inputs (in thousands of units)Finaldemand ABCOutputs(in thousands of units)ABC801201601302601301501505040120160 Required:Derive the technical coefficients matrix. Determine the Leontief’s inverse matrix. Compute the output level for each product if the final demand for product A increased by 4000 units, that of product C decreased by 2,000 units and the final demand for product B remained unchanged.

The technological coefficient matrix refers to the matrix of B. Matrix of B contains…

Answered: A company produces three products which…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A company produces three products which are interdependent. These are products A, B and C. The flow of inputs and outputs between the products is represented in the table below.

Inputs (in thousands of units)

Final

demand

Outputs

(in thousands of units)

120

160

130

260

130

150

120

160

Required:

Derive the technical coefficients matrix.
Determine the Leontief’s inverse matrix.

Compute the output level for each product if the final demand for product A increased by 4000 units, that of product C decreased by 2,000 units and the final demand for product B remained unchanged.

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