economics

A. The new product will be lauched soon. Where there are Labor (L) and capital (K) produce output (0), Q = 0.025L05 Ko.5 MPL - 0.046(0.5)L-0.5K0.5 MPK = 0.026(0.5)10.5 K-0.5 How many units of products can be produced with: 91 units of labor, $20,000 capital. And 253 units of labor and $40,000 of capital. What will happen to the returns to scale (increase, constant, or diminishing)? Compute change in the marginal product of labor when labor: from 91 to 253 units, when it holds constant capital at 20,000 units. Then compute change in the marginal product of capital: from $20,000 to $40,000, when it hold constant labor at 91 units. Are returns to each factor increasing, constant, or diminishing? What will happen to each factor (increasing, constant, or decreasing?B. An entrepreneur is starting its business. By hiring locals, he can make $900 over a three month. After that he will rent a machine at a rental fee of $2000. The projected surcharge is $ 250 for promotion and $ 4 per unit for materials. The product will be priced at $ 6.50 per unit. Determine: the accounting cost functions the economic cost functions How many units the products will be in the economic breakeven point