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# Ans to the Q. No.

## Interpretation of the Direct requirement Matrix :

Each cell in a column of the direct requirement matrix shows how many cents of each
producing industry’s goods and/or services are required to produce one dollar of the
consuming industry’s production are called technical coefficients.

## Here in the given table 0.264 is the technical coefficient.

It derives that 26.4 cents of agricultural products must be directly purchased to produce a
dollar’s worth of textile products .

## Ans to the Q. No. 2

(a) Direct requirement matrix for the given data :

A= 0.5 0.19 0.16
0.18 0.25 0.25

1 0 0
I= 0 1 0
0 0 1

## 0.86 -0.14 -0.08

I-A = -0.5 0.81 -0.16
-0.18 -0.25 0.75

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Total Requirement Matrix :

## 1.4 0.31 0.21

(I-A)^-1 = 7.9 1.5 0.43
0.65 0.58 1.5

## 1.4 0.31 0.21 350

X= 7.9 1.5 0.43 400
0.65 0.58 1.5 150

672
= 3932
415.5

## 1.4 0.31 0.21 250

X= 7.9 1.5 0.43 300
0.65 0.58 1.5 100

480
= 2949
273

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Ans To the Q. No.4

1 2 3 4

## So , Technology B should be undertaken .

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Ans to the Q. No. 5

## High(1.0) Low Medium High

10*1.0=10 50*1.0=50 100*1.0=100

## Medium(0.5) Low Medium High

10*0.5=5 50*0.5=25 100*0.5=50

## Low(0.1) Low Medium High

10*0.1=1 50*0.1=5 100*0.1=10