Be as specific as possible and always include explanations that describe your reasoning.

Suppose you're writing a report for the CEO of a wind power company. The CEO has the following questions she would like analyzed and answered as well as possible.

1.The CEO is considering production decisions in the short-run and the long-run. In economics, what defines the short-run period from the long-run period? How do the considerations and actions available in the short-run differ from those in the long-run? How might these differences affect production decisions?

2.What are Returns to Scale in relation to the production function? How could you go about evaluating the Returns to Scale for a particular production process? How could you determine if it is Increasing Returns to Scale, Decreasing Returns to Scale, or Constant Returns to Scale?

a.What is the Returns to Scale for the production function Q = 10L + 12K, and explain how you determined it?

b.What is the Returns to Scale for the production function Q = 15LK3, and explain how you determined it?