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Question about IRTS and elasticity of substitution attached below a. Explain the concept of increasing return to scale (IRTS) of production function and what is

Question about IRTS and elasticity of substitution attached below

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a. Explain the concept of increasing return to scale (IRTS) of production function and what is the implication of IRTS on the average and marginal cost! Why the firm who has IRTS production technology will be a champion in the industry? What the source of IRTS technology? (6 points) b. Find the elasticity of substitution and explain the meaning of this elasticity of the following production function: (7 points) q = K05 + 10.5

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