1. (24- points) Suppose that you are an industry analyst. You want to estimate s constant elasticity of substitution (CBS) production tnction, using real data on China's steel industry. You are aware that the CES production function has a few unique properties that you should verify rst. Consider the production snction in its general form: Q = Fa, K) = (LP + WW". (a). Check whether this production function exhibits increasing return to scale, constant return to scale, or decreasing return to scale. (b) Find the elasticity of substitution of this CES production function. (e). Derive the factor demand functions, L709, 115 d and 370,, w; r). (d). Suppose you estimate 9 = as, what is the Erin's short-run total cost function when capital is fixed at E? What is the size of the xed cost? (e) Given (.1 = '1': , Find the rm's short-run RFC and longrun AC mctions. When are the];r equal? (f). Given 9 = 1A, what is the market Price in s long-run perfect competitive equilibrium