Suppose That an Economy Can Be Represented by the Technology

question 70

Multiple Choice

Suppose that an economy can be represented by the technology matrix below. If surpluses of 180 units of fishing output, 93 units of agricultural goods, and 40 units of mining goods are desired, find the gross production to the nearest unit of each industry. ​ ​

• A)fishing = 632, agriculture = 796, mining = 570
• B)fishing = 633, agriculture = 796, mining = 568
• C)fishing = 632, agriculture = 796, mining = 568
• D)fishing = 632, agriculture = 793, mining = 568
• E)fishing = 633, agriculture = 793, mining = 570

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Definitions:

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital.

Production Function

A mathematical model that describes the relationship between input factors of production (like labor and capital) and the output of goods or services that result.

Factor Prices

The prices of inputs used in the production of goods or services, such as labor wages, rent for land, and profit for capital.

Output Cost

The total expenses incurred in the production of goods or services, including both variable and fixed costs.