An Economy Has Three Industries: A, B, and C

question 5

Short Answer

An economy has three industries: A, B, and C. These industries have annual consumer sales of 45, 37, and 64 (in millions of dollars), respectively. In addition, for every dollar of goods that A sells, A requires 25 cents from B and 15 cents from C. For each dollar of goods that B sells, B requires 35 cents from A and 25 cents from C. For each dollar of goods that C sells, C requires 20 cents from A and 45 cents from B. Let a, b, c be the total output from industries A, B, C, respectively. What values of a, b, c (rounded to the nearest thousand dollars) will satisfy both consumer and between-industry demand?

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Definitions:

Candy Company

A business entity that specializes in the production and sale of confectioneries such as chocolates, candies, gums, and other sweet items.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Normal Distribution

A probability distribution that is symmetrically centered around its mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Acres

A unit of land area used primarily in the US, equal to 4,840 square yards or approximately 4,047 square meters.