1. (15 points) Answer the following questions about a firm's production technology. a. (5 points) Can a firm's production technology exhibit both constant returns to scale and diminishing marginal product to each input? b. (5 points) Does the production function f(x1, x2) = min{x1, x2} exhibit constant returns to scale? c. (5 points) Suppose a firm can always substitute 2 units of labor for 3 units of capital in its production process. Write down a possible production function for this firm.

2.Suppose that a firm's production function is given by f(x1, x2) = 2 x1 + x2. If the price of both inputs is $1, in what proportion should the profit-maximizing firm use inputs 1 and 2?