A Closed Model for an Economy Has a Manufacturing Industry

question 101

Multiple Choice

A closed model for an economy has a manufacturing industry, utilities industry, and households industry. Each unit of manufacturing output uses 0.6 unit of manufacturing input, 0.4 unit of utilities input, and 0.2 unit of households input. Each unit of utilities output requires 0.3 unit of manufacturing input, 0.5 unit of utilities input, and 0.2 unit of households input. Each unit of household output requires 0.2 unit each of manufacturing and utilities input and 0.4 unit of households input. Write the augmented matrix for this closed model of the economy. ​

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the industry.

Perfect Competition

An idealized market structure where all participants are price takers due to the presence of many participants, homogeneous products, and no barriers to entry.

Market Price

The price at which a good or service is offered in the marketplace.

Differentiated Products

Products that are distinguished from similar products by unique characteristics, branding, or quality, allowing companies to compete beyond price.