Woodmaster uses labour {L} and capital (K) to produce furniture ([1). 1Ililoodmasterfs production function is given by Q = [KG+LG)L1_E, where L :5 i], If 3: U, Q 3} U. Suppose a = [1.75. (a) {5.25 points} The production function exhibits which returns to scale? Oa. constant Oh. increasing Oc. decreasing {b} [0.25 points] Suppose to and r are prices of L and K. Let chat, 1', Q] denote the cost function associated with 1I."u'oodmaster's production function. The average cost of production, i.e. chat, 1', QUQ Oa. is decreasing in Q Oh. is increasing in Q Do. does not change with Q Write your answers to 3 decimal places. (c) {0.5 points) To minimise costs, Woodmaster uses labour {L} and capital {K} in equal amounts. Then it must he the case that E = D