1.The production at a copy shop is = 50 min(2, 5), where q is the number of copies per hour, L is the number of workers, and K is the number of copy machines. As an example, if L2 and K1,then min(2,5)=4, and q=200.

a)Draw the isoquants for this production function.

b)Draw the total product, average product, and marginal product of labour curves for this production function for some fixed level of capital.

2. Wang's Wondersuit company is a small firm in a big clothing industry. It has a production LO.B function given by q(L,K)=510.8K0.2 with MPL =5*0.8* L0.2 and MPk =5*0.2* KO.B a) What is the MRTSLK? b) Does this technology exhibit increasing, decreasing, or constant returns to scale? Show generally. What is the firm's output when it uses 100,000 units of labour and 32 units of capital? What happens to the firm's output when it doubles its input levels? c) Suppose the firm is using 100,000 units of labour and 32 units of capital. The wage rate is given as $8 per unit and capital rental rate is given as $4000 per unit. Is this firm producing at minimum cost? If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm should change the ratio of inputs it uses to lower its cost. Could the firm change the wage and rental rates instead