1. Suppose the production function of a toy factory is: Q=10L^0.6 K^0.4 And that the wage of the worker is 10 riyals per hour (w = 10) and the wage of the capital unit is 20 per hour (r = 20)). After studying the market demand, the company decided to produce 1,000 children's toys (Q = 1,000). Find the amount of labor (L) and capital (K) that the firm has to employ and the costs of production.

2. Suppose the production function of a factory is:

Q=100K^0.5 L^0.4

Find the marginal product of labor (MPL)

Find the marginal product of capital (MPK)

Is there decreasing rate (MRTS)? Explain that.

Is there an increase, decrease, or stability in volume returns? Explain that.