Currently, ,Where MPs and MPa Are the Marginal Products

question 35

Essay

Currently, ,where MPs and MPa are the marginal products of steel and aluminum for a company whose production function is Q = s^0.5 a^0.5.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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Definitions:

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Dividend Rate

The amount of dividend paid per share divided by the price per share, often expressed as a percentage, indicating the returns shareholders receive for each dollar invested in the company's stock.