We assume that in a village there are farmers, carpenters, and tailors, who provide the three essential goods: food, housing, and clothing. Suppose the farmers consume 2/5 of the food (produced by farmers), 1/3 of the housing (produced by carpenters) and 1/2 of the clothes (produced by tailors). The carpenter consumes 2/5 of the food, 1/3 of the housing, and 1/2 of the clothes. The tailors consume 1/5 of the food, 1/3 of the housing, and no clothes. Assume this is a closed Leontief model. If we know that the tailors produce 560 units of clothes, then the farmers produce units of food, and the carpenters produce units of housing.

The farmers produce 746 units.

The carpenters produce 746 units.

Explanation:

Leontief model is a model of economics for whole country. It helps to understand the effects of increased production on the economy. In the given scenario the farmers, carpenters and tailor maintain a ratio in which they produce goods. The equilibrium condition will be Ap = p. The ratio of farmer, carpenter and tailor will be 4:4:3 to achieve the equilibrium. If the tailor produces 560 units then farmer will produce 560 * 4 /3 and carpenter will produce 560 *4/3.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o