Question

Suppose the economy of an underdeveloped country has an agricultural industry and an oil industry, with...

Suppose the economy of an underdeveloped country has an agricultural industry and an oil industry, with technology matrix A.

A     O
A =
0.4   0.2
0.2   0.1
  
Agricultural products
Oil products

(a) If surpluses of 0 units of agricultural products and 600 units of oil products are desired, find the gross production of each industry.

agricultural products:    _____ units
oil products:   _____ units


(b) Find the additional production needed from each industry for 1 more unit of oil products surplus.

agricultural products: ______ units
oil produts: _______ units
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