Question

Refer to the economy that is divided into three sectors-manufacturing agriculture and services. for each unit of output, manufacturing requires 0.1 unit from other companies in that sector, 0.3 unit from agriculture, and 0.3 units from services. What is the total input required from other companies in the manufacturing sector for producing 10 units of output?

Answer 1

To produce 10 units in the manufacturing sector, 1 unit of input is required from other companies within the same sector, calculated by multiplying the per unit requirement (0.1) by the number of units to be produced (10).

Step-by-step explanation:

To calculate the total input required from other companies in the manufacturing sector for producing 10 units of output, we use the information provided about the input requirements. For each unit of manufacturing output, 0.1 unit is required from the manufacturing sector itself. If 10 units are to be produced, the total input from the manufacturing sector will be 0.1 units per output multiplied by 10 units.

The calculation is as follows: 0.1 input/unit × 10 units = 1 unit from the manufacturing sector.

Therefore, to produce 10 units of output in the manufacturing sector, 1 unit of input is required from other companies within the same sector.