The estimated production function of the furniture producing company is

Q = 1.3 L^0.70 K^0.30

L - labor

K - Kapital

Answer the following questions properly:

a) does the production function exhibits increasing return to scale, decreasing return to scale or constant return to scale?

b) derive elasticities for L and K and interpret your results

c) if K and L doubles what will be the percentage change in Q?

d) now assume only capital doubles, what you can say about the marginal product? point)