Answer:
Merchant: $7950
Baker: $7900
Farmer: $13750
Step-by-step explanation:
To produce $18000 worth of output from merchant we would need
- $18000*0.15 = $2700 worth of product from the baker
- $18000*0.35 = $6300 worth of product form the farmer
To produce $11000 worth of output from the baker we would need
- $11000*0.45 = $4950 worth of product from the merchant
- $11000*0.2 = $2200 worth of product from himself
- $11000*0.35 = $3850 worth of product form the farmer
To produce $12000 worth of output from the farmer we would need
- $12000*0.25 = $3000 worth of product from the merchant
- $12000*0.25 = $3000 worth of product from the baker
- $12000*0.3 = $3600 worth of product form the himself
In total:
The merchant would need to produce: $4950 + $3000 = $7950
The baker would need to produce: $2700 + $2200 + $3000 = $7900
The farmer would need to produce: $6300 + $3850 + $3600 = $13750
