Develop the stock-flow dynamic model of the following soenario:Production is dependent on how many production plants we have. Initially we have aero production plants but it increases over time through gdditing of new production plants and decreases over time through deteriotation with a rate of 5%. The addition of new production plants is done through investments, Investments are financed by credits and reinvested profies. We can only do investments if we have more net revenues than our dept payements. Revenues depend on sales and price factor. Sales in this model is equalto production. And the price factor is modeled as a function of production over demand. Debt decreases via repayments and increases through new credits and through additional debt due to interest payments (added if interest payments exceed revenues).You must also write down all stock flow equations to get credit.
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