Question 5 Policy matters (10 marks) Consider two firms who both produce widgets and face an identical Cobb-Douglas production function. They also face identical input costs. The only difference in that one firm is in country A and the other is located in country B. Using appropriate diagrams to assist you, provide an argument to explain how the relative input mix of firm A and B might differ if: a) The government of country A introduces a wage subsidy. b) If the Reserve Bank in country B offers reduced interest rates on loans to firms in the widget-making sector