A large energy company produces electricity, natural gas, and oil. The production of a dollars worth of electricity requires inputs of$0.30 from electricity, $0.10 from natural gas, and $0.20 from oil. Production of a dollars worth of natural gas requires inputs of $0.30 from electricity, $0.15 from natural gas, and $0.18 from oil. Production of a dollars worth of oil requires inputs of $0.10 from each sector.

Write the technology matrix that describes the paragraph above. Make sure you label the rows and columns input and output.

Using the technology matrix, what type of energy is least dependent on itself?

For each $1,000 of natural gas produced, how much oil was required?

Find the output for each sector that is needed to satisfy a final demand of $25 million for electricity, $15 million for natural gas, and $20 million for oil.