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An economy has two goods: steel and lumber. The production of 1unit of steel requires 0.4 units of steel and 0.6 units of lumber, and
An economy has two goods: steel and lumber. The production of 1unit of steel requires 0.4 units of steel and 0.6 units of lumber, and the production of 1unit of lumber takes 0.7 units of steel and 0.3 units of lumber. If the government has set aside funds to build a railroad, what percent should go to each industry?
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