4. Consider the following two rmlevel production functions, both of which exhibit increas ing returns to scale: yz- : Fag, hi) : Akihi and yz- : Gash hi, Y) : AkhY (4) Here 1:6 and h1- are capital and labour which rm i chooses to produce its output, yd. Y is aggregate output in rm is industry, which it takes as given. a. Explain the differences between these two production functions from rm i's per spective. b. For the overall economy, the second production function is consistent with a com petitive equilibrium in which the price equals rm i's marginal cost, whereas the rst is not. Why is this