,
where MPs and MPa are the marginal products of steel and aluminum
for a company whose production function is Q = s0.5
a0.5. Ps = Pa = $1 are the prices of steel and aluminum,
respectively, and the company has a total budget of $2 to spend on
these inputs. If the market price of the output is $3 per unit,
then how many units of s and a should the firm hire? What will be
its output, revenue, costs, and profits?
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