UESTION 1 This question explores some of the points discussed in the rst lecture, with regards to the Simple Model of Production. It is also designed to test your undelstanding of Chaptels 3 and 4 of the prescribed textbook. Consider an economy with the following Cobb-Douglas production function: Y = AK\"L3 Further, assume the assumptions made in lecture I hold and that alpha and beta are both strictly positive. Answer the following questions: a) For this part of the question only, assume a = 0.2 and = 1.1. Provide an intelpl'etation for the exponent of the capital input. [1) Find expnessions for the marginal product of capital (MPK) and labour (MPL) in this economy, using at and B. For what values of a and would the assumption of diminishing return to inputs is satisfied? Provide a brief explanation of what diminishing returns to inputs mean