A hypothetical economy produces only two commodities A and B. The two

1.	A hypothetical economy produces only two commodities A and B. The two commodities serve as intermediate inputs in each other’s production. 0.2 units of A and 0.45 units of B are required to produce a unit of A, whereas 0.6 units of A and 0.2 units of B are required to produce a unit of B. In addition to these, 3 units and 2 units of primary inputs are needed to produce each unit of A and B respectively. If the price of primary input is Nu. 20 per unit, compute the prices of the commodities.
Answer» ANSWER: igswugsu3sg3ysgusg4ysg3ygsvs3ysg3usgu3sugs avgsu2gs2usg2usgu2ba 2ua3ssguegsiwshieshiwsgeisgwishiwsgiesgeishu3

A hypothetical economy produces only two commodities A and B. The two commodities serve as intermediate inputs in each other’s production. 0.2 units of A and 0.45 units of B are required to produce a unit of A, whereas 0.6 units of A and 0.2 units of B are required to produce a unit of B. In addition to these, 3 units and 2 units of primary inputs are needed to produce each unit of A and B respectively. If the price of primary input is Nu. 20 per unit, compute the prices of the commodities.

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igswugsu3sg3ysgusg4ysg3ygsvs3ysg3usgu3sugs avgsu2gs2usg2usgu2ba 2ua3ssguegsiwshieshiwsgeisgwishiwsgiesgeishu3

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