A economy has 25 units of

A economy has 25 units of

A economy has 25 units of resources. It may use these resources to invest in capital or invest in consumption. The cost of every unit of capital is 1 unit of the resource good. Each consumption goods costs 2 units of resources. Assume that the economy needs at least 15 nal goods ( consumer goods and capital goods) to be produced. Write out the model as a system of inequalities. Solve it graphically.

%d bloggers like this: