4) Consider the production function Q= 10L-.5L2+ 24K - K2for L and K in the range of0 to 10 units.Does this production function exhibit diminishing returns to each input? Does it exhibit decreasing returns to scale? Explain.

5.) Suppose the inputs in Problem 4 can be purchases at the same price per unit. Will production be relatively labor intensive or capital intensive? Explain.

6.) Distinguish diminishing returns and decreasing returns to scale.

7.)A trendy American restaurant is one of the first businesses to open in a small corner of a commercial building still under construction.The restaurant has received rave reviews and has lines of diners waiting fortables most nights. In the short run ( next few months), what measures should the restaurant take to maximize its profit? Explain.