A FIRM USING 2 INPUTS, LABOUR HOURS L AND CERTAIN RAW MATERIAL R AS VARIABLE INPUT, ALL OTHER INPUTS ARE FIXED. THE PRODUCTION FUNCTION IS GIVEN AS;

q=40L - 2L² +24K -K²

THE WAGE OF LABOR W IS 8 dollars and the price of capital is 4 dollars per unit; firm has buget of 56 dollars for the total combined wage of labor and price of raw material

1. DOES THE FIRM HAVE INCREASNG OR DECREASING OR CONSTANT RETURN TO SCALE AND WHY
2. DRIVE THE MARGINAL PRODUCT OF LABOR AND CAPITAL
3. WHAT IS THE OPTIMAL LEVEL OF LABORS AND CAPITAL THE FIRM SHOULD USE IN ORDER TO GET MAX PROFIT