ISI ,. Production question

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ISI ,. Production question

Spiti

Production function  for corn is min(c/0.1,m/0.3,l/5) right?
Also in subquestion (i), do we take the amount of corn and machines required to produce 48 units as endowments?
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Re: ISI ,. Production question

mrittik
lets you think about the market demand of Corn (C) and Machine (M).
C=48 + 0.1C + 0.4M.......Eqn (i)
M= 0 + 0.3C +0.6M .......Eqn (ii)

Now solve it and think
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Re: ISI ,. Production question

Shefali
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Re: ISI ,. Production question

Spiti
In reply to this post by mrittik
Can you explain? I don't really understand two equations that you have given. What is the production function?
I am thinking that initially the economy as a whole should be endowed with some corn and machines, otherwise if the economy starts with both 0,0 then how can it produce any corn that is needed as input to produce further corn. Same with machines.