Homework 93 Due: April 24fr1 Total Point: 45 1. (15pt) In class, we assume the production function exhibit diminishing marginal returns to capital. Let relax this as5umption and assume the production function exhibit increasing marginal returns to capital: investment: 5 s y While k" remain as a steady state, is it a long run equilibrium? Consider two cases: k1 and k2. If the economy starts at k1, what is the long run equilibrium? Ifit starts at k2, what is the long mn equilibrium? Your points will base on your clarity your explanations, with the help of the graph (You absolutely need to use the above graph, and feel ee to write on it for your explanation.)