1. The graph below has four isoquants and four isocost lines. Figure: Production isoquants Cost minimization; w = r = 1 5 pinion pan 3 capital 2 0 2 labor a. Identify and explain which of the isoquants for M-2 corresponds to decreasing, constant and increasing returns to scale relative to the M-1 isoquant. (2 marks) b. Identify and explain what will happen to the expansion path in the diagram if the wage rate falls. (3 marks) c. Identify and explain what will happen to the expansion path in the diagram if the rental rate of capital falls