1. A certain firm in the beverage industry is faced with the following Cobb-Douglas production function of

a) What is, holding Capital fixed?

b) What is the level ofandwhen K is fixed at 20

c) According to the Cobb- Douglas function , calculate the MRTS

d)What type of returns to scale does this production function exhibit?

2.Utility function of an individual is given by. find out the optimal quantities of the two goods using Langrangian method , if it is given that price of good X is N$6 per unit and price of good Y is N$3 per unit and income of the individual is equal to N$120?