1. Consider the following production function: y = f (L, K) = min {1.3, 2K}. (a) Derive the technical rate of substitution. (b) Determine the returns to scale (constant, increasingI or decreasing). (c) Determine the long-run cost function c(w,r,y), where r is the rental rate of capital, is is the wage rate, and y is the target output. (d) Suppose the market price of output is p. Solve the rm's long-run prot max- imization problem {using the cost function above). Briey describe the rm's supply decision