1 l A firm has a production function of f(l, k) = 313 k3 where l is the amount of labour and k is the amount of capital. Does this production function has increasing, decreasing, or constant returns to scale? Is the marginal product of labour increasing, decreasing, or constant? If the price of output is 8, the price of labour is w (the wage rate), and the price of capital is r (i.e. the rental rate of capital is r) what are the inverse factor demand functions for labour and capital? If the wage rate is $2, and the rental rate of capital $6, how much labour and capital should the firm use? What will be their profit