> (3) Next, assume that the price/value ratios (r) are wholly random. In
any
> individual case, price can be very high relative to value or very low.
To
> approximate this, assume that r is a random number evenly distributed
between,
> say, 0 and 1,000,000.
>
Why assume that this distribution is rectangular.
If the price of an industries output was independent of the value of
its output, your number r would be the ratio of two random variables
which would not in general be rectangularly distributed. By assuming
a rectangular distribution it seems to me you are assuming a correlation
to start with.