System 2 with 100 hectares of land: –1–1 hectare land + 6/10 bushels wheat + 1/10 kilo steel produces 1 bushel wheat –0–0 hectare land + 1/10 bushel wheat + 9/10 kilo steel produces 1 kilo steel 60 wheat + 10 steel -> 100 wheat 10 wheat + 90 steel -> 100 steel Net output 30 bushels wheat, 0 kilos steel Benefits of improved technology –1–16% reduction in necessary inputs –5–50% increase in net product
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