{15 points) The Zany Florist is a rm operating in the orist industry in Toronto, Ontario operating in pure competition. Suppose the production inetion for Zany is given as y = it. 1,}: Zk'r'gi'w, where it is capital and I is labour. If prices of capital and labour are w; = pk = l and W1 = pi = 16, and the price of output ,9 = 12. Answer the following a} Does the technology for Zany exhibit constant, increasing, or decreasing returns to scale in production? b} Find the marginal product of each factor {labour and capital} and the [marginal] rate of technical substitution. Show that both labour and capital exhibit diminishing marginal product. e} Suppose Zany has a xed amount of capital such that, E = 8. Find the conditional input demands, the quantity of output produced, and rm's prot. Illustrate graphically