Consider a firm produce hams with production function q = f(k,l) = (kl)/10 where k is capital and l is labor. The input prices are w = $10 and r = $100 for labor and capital, respectively.

(a) Does this firm's production exhibit increasing, decreasing or constant returns to scale?

(b) Find the conditional factor demands for labor and capital in terms of q.

(c) Find the firm's total cost function C(q).

(d) Suppose that price of output is $2. How much of the hams will this firm produce to achieve profit maximization? How much labor and capital does the firm use?

(e) Identify the firm's long-run supply curve.