An economy has four sectors: Agriculture, Manufacturing, Services, and Transportation. Agriculture sells 20% of its output to Manufacturing, 30% to Services, 30% to Transportation, and retains the rest. Manufacturing sells 35% of its output to Agriculture, 35% to Services, 20% to Transportation, and retains the rest. Services sells 10% of its output to Agriculture, 20% to Manufacturing, 20% to Transportation, and retains the rest. Transportation sells 20% of its output to Agriculture, 30% to Manufacturing, 20% to Services, and retains the rest. a) Construct the exchange table for this economy. b) Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.

An economy has four sectors: Agriculture, Manufacturing, Services, and Transportation. Agriculture sells 20% of its output to Manufacturing, 30% to Services, 30% to Transportation, and retains the rest. Manufacturing sells 35% of its output to Agriculture, 35% to Services, 20% to Transportation, and retains the rest. Services sells 10% of its output to Agriculture, 20% to Manufacturing, 20% to Transportation, and retains the rest. Transportation sells 20% of its output to Agriculture, 30% to Manufacturing, 20% to Services, and retains the rest. a) Construct the exchange table for this economy. b) Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 14E

See similar textbooks

Similar questions

A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won& buy it because they done like the taste. From an economic perspective, the company should.......... keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don& like the taste. From an economic perspective, the company should keep the hamburger on the menu because they spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
There is an economy with three firms: fisherman, beer brewery, and resturant.
Consider the given simple economy. Sheepnip Co. makes sheep feed. Better-bald Inc. purchases sheep feed for the sheep it raises and sells wool. Sweeter Sweaters Inc. makes and sells wool sweaters. Sheepnip Co. Better-bald Inc. Sweeter Sweaters Inc. $0.00 $1900 $0.00 $0.00 $0.00 $3150 $700 $300 $550 Interest payments $400 $100 $50 Rent $700 $100 $650 Profits $100 $750 $800 What is the total payments (income) to factors of Better-bald Inc.? Sheep feed Wool Wages What is the total payments (income) to factors of Sweeter Sweaters Inc.? What is the GDP for this economy? S
Consider the given simple economy. Sheepnip Co. makes sheep feed. Better-bald Inc. purchases sheep feed for the sheep it raises and sells wool. Sweeter Sweaters Inc. makes and sells wool sweaters. Sheepnip Co. Better-bald Inc. Sweeter Sweaters Inc. $0.00 $1900 $0.00 $0.00 $0.00 $3150 $700 $300 $550 $400 $100 $50 $700 $100 $650 $100 $750 $800 What is the total payments (income) to factors of Better-bald Inc.? Sheep feed Wool Wages Interest payments Rent Profits What is the total payments (income) to factors of Sweeter Sweaters Inc.? What is the GDP for this economy?
Toyota has started a major expansion of a Texas factory. It has already spent $11 million and has finished one building. It can finish the interior for an additional $6 million. The highest price it can get for the current unfinished building is $7 million. If Toyota’s estimated benefits of the building with the finished interior are $15 million, what should it do? . a Complete the interior. The benefits of the finished building are greater than the $6 million costs of the building. b Complete the interior. The benefits of the finished building are greater than the $7 million costs of the building. c Complete the interior. The benefits of the finished building are greater than the $13 million costs of the building. d Sell the building. The benefits of the finished building are less than the $17 million costs of the building. e Sell the building. The benefits of the finished building are less than the $24 million costs of the building.
Select the number of the question and the letter to indicate the answer you consider correctfor each question. Answers to all questions are to be recorded on the answer sheet. (Pleasenote - Do not submit the full question with a circle answer. ONLY the number and theletter).1. The Law of demanda. applies to final consumer goods but not to the productive resources purchased bybusiness firms.b. tells us how much of a good people want, but not necessarily how much of that good theyare willing to pay for.c. tells us that when the price of a good falls, quantity demanded will increase.d. applies only to goods that are not absolute necessities. 2. The law of supply states that all other things remaining the same:a. as the price of a good increases, supply of the good will increase.b. as the price of a good increases, the quantity of the good supplied willincrease.c. as the price of a good increases, demand for the good will increase.d. as the price of a good increases, the quantity of the…
A recent trend in health insurance is the Health Savings Account (HSA). The idea behind Health Savings Accounts is that rather than providing employees with health insurance that makes visiting doctors cost little more than a simple $10 or $20 copay the employer gives the employee money to use to spend on health care, but the employee bares the entire cost of seeing the doctor. What money given for health care not spent by the employee can be withdrawn by the employee as if it was additional income. It is believed that Health Savings Accounts will reduce the total amount of money spent on seeing doctors. Using Supply and Demand analysis, explain why there is the expectation that HSA’s will reduce spending on doctors.
_______ A system where individuals own and operate themajority of businesses
Explain whether you agree or disagree with the following statement:"Value is maximized when the market rate of interest exceeds the rate of return that can be earned by afirm on its investment"
20. Toiva and Ali were relaxing in a local coffee shop after school. Ali looked at his coffee and said, "Sometimes I think that, by drinking this, I'm hurting others." What do you think he meant?
Of 4. Use the Table below: Nike and Reebok Sales. Reebok and Nike must decide whether to have a sale or not, based on the potential economic profits shown in the table. Table: Nike and Reebok Sales Reebok Sale No Sale Reebok: $5M Reebok: $1M Sale Nike Nike: $5M Nike: $30M Reebok: $30M Reebok: $20M No Sale Nike: SIM Nike: $20M a.{9}Is there a Nash equilibrium in this game? If there is what is it, and if not, why not? b. (8.5) If Nike and Reebok were to collude to maximize joint profits, what decision should each firm pursue?