Firms and markets Yossi Spiegel Problem set 2: Technology and cost functions Problem 1 A firm produces a single output using two inputs in fixed proportions. Suppose that it is known that the firm's cost function is C(q) = (3w1 4w2)q, where q is the firm's output, w1 and w2 are the per-unit costs of the two factors of production that the firm uses. What is the number of units of each factor required to produce a single unit of output?