Question

Q-1. Covid-19 associated lockdown has opened up a situation of choice on scarce resources
before economy for production of either x (like car) or y (like television) or z (like medicine-box).
Suppose the production behavior of economy is defined by three capital assets: human capital
(labour), physical capital (machine) and financial capital (money) that are available respectively in
amount 73 units, 85 units and 56 units. As per the current position of economy at production
possibility frontier, full employed labourers can produce 2 cars, 5 televisions and 6 medicine-boxes.
Similarly, machine capacity allows to produce 4 cars, 2 televisions and 7 medicine-boxes. Financial
constrain limits to 5 cars, 3 televisions and 9 medicine-boxes.
Using the matrix inverse technique with above information, determine the economy's position at
PPF. Do you agree that the same results on x, y and z can obtain if one uses Cramer's Rule?
(L-3: application)

Answer 1

Answer:

very big to understand