Leontief Production Equation Calculator

Formula

The formula to calculate the Leontief Production Equation (PTO) is:

\[ PTO = IC + ED \]

Where:

Leontief Production Equation: A model used to calculate the total output of an economy or sector by summing internal consumption and external demand.
Significance: Helps in understanding the interdependencies within an economy and planning for production and resource allocation.

Let's say the internal consumption (IC) is 500 units and the external demand (ED) is 300 units. Using the formula:

\[ PTO = 500 + 300 = 800 \]

So, the total output (PTO) is 800 units.