14:52 Ii '0' "3m\" .III 25%- PROBLEM VIII. Suppose that there are three rms in a market, rm A, rm B, and rm C. These firms produce an output good from one or both of two input goods, input 1 and input 2, The price of the output good is p = 16, that of input 1 is 1111 = 4, and that of input 2 is w; = 8. Firm A uses both input 1 and input 2 to produce the output good and has a production function fA($1,$2) = 4V5? + 2%- Firm B uses only input 1 to produce the output good and has a production function f 3(31) = x/Il- Firm C uses only input 2 to produce the output good and has a production function fc($2) = 3%- Qtl. Firm A's prot maximizing amount of input 1 is (a) 4. (b) 16. (c) 64. (d) 36. (e) 9. Q41. Firm A's prot maximizing amount of input 2 is (a) 4. (b) 16. c) 64. (d) 36. (e) 9. 1501'18 Ill 0