Business MathematicsNEB 2081
If the matrix of technical coefficients is A = bmatrix 0.1 & 0.2 \\ 0.3 & 0.4 bmatrix then Leontief matrix is a) bmatrix 0.1 & 0.2 \\ 0.3 & 0.4 bmatrix b) bmatrix 0.9 & 0.2 \\ 0.3 & 0.6 bmatrix c)…
1If the matrix of technical coefficients is then Leontief matrix is a) b) c) d)
Answer
The Leontief inverse matrix (also called the open matrix) is derived by subtracting the technical coefficients matrix from the identity matrix . The formula is:
Given:
Compute :
Thus, the correct Leontief matrix is:
Answer: c)
Discussion
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