Stumped? Get a Hint for Solving the Problem

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In summary, the conversation discusses a problem involving a Leontief model and the question of whether it is acceptable for cii to be greater than 1 for some i. The problem asks for both mathematical and real-world reasons for this. The speaker is unsure of how to answer the question but suggests that numbers greater than one may be allowed along the diagonal.
  • #1
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I attached the problem.

I honestly have no idea how to even go about solving this problem. If someone can give me a hint, that'd be great.
 

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  • #2
charlies1902 said:
I attached the problem.

I honestly have no idea how to even go about solving this problem. If someone can give me a hint, that'd be great.

Start by understanding what the problem is saying. You have a Leontief model of the form
[tex] \textbf{x} = C \textbf{x} + \textbf{d}, [/tex]
where d is external demand and C is the inter-sector internal demand matrix. The question is asking if it is OK to have cii > 1 for some i, and if not, why not.
It asks for both mathematical and real-world reasons.

RGV
 
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  • #3
I have read about the Leontief model but I still don't know how to answer the question. I think you should be able to have numbers greater than one along the diagnol
 

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