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Your company currently uses steel and aluminum in a production process. Steel costs $.50 per pound, and aluminum costs $1.00 per pound. Suppose the government

Your company currently uses steel and aluminum in a production process. Steel costs $.50 per pound, and aluminum costs $1.00 per pound. Suppose the government imposes a tax of $.25 per pound on all metals. What affect will this have on your optimal input mix? Show using isoquants and isocost lines

Would there be one isoquant curve and two isocost lines our would the isoquant curve shift as well as the tax is implemented

What would the graph look like?

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