Question 1 Not yet answered Marked out of 4.00 V7 Flag question A firm hires two inputs, input 1 and input 2, to make output. Unfortunately, for every unit of input 1 that the firm hires, 1 7 m units turn out to be defective, where 1 > 1 7 a, > 0. That is, only a fraction a of purchased units of input 1 actually contributes to producing output 3;. Let ml and :52 be the quantities that are not defective and can be employed towards production. If rounding is needed, please round your answers to 3dp. Suppose the firm's production function is such that :31 and 1:; are perfect substitutes: each unit of output can be made with either one unit of 9:1 or 1 units of 1:2. 4 Suppose wl = 1 and w; = 7. It is optimal for the firm to hire only input 1 {and hire 0 units of input 2) if a 2 E Suppose the firm's production function is such that 221 and :12; are perfect complements: the firm needs 1 unit of $1 and 10 units of 3:2 to make each unit of output. Find the total cost of producing 9 units of output when 101 = 1112 = 1 and a. = 0.2. E