Woodmaster uses labour (L) and capital (K) to produce furniture (0). Woodmaster's production function is given by Q 2 (Kg + La)Ll_a, whereL > O,K > O,Q > 0. Suppose a = 0.34. (a) (0.25 points) The production function exhibits which returns to scale? Oa. constant Ob. increasing Oc. decreasing (b) (0.25 points) Suppose w and 7' are prices of L and K. Let C(w, T, Q) denote the cost function associated with Woodmaster's production function. The average cost of production, i.e. C(w, 6", Ql/Q Oa. is decreasing in Q Ob. is increasing in Q Oc. does not change with Q Write your answers to 3 decimal places. (0) (0.5 points) To minimise costs, Woodmaster uses labour (L) and capital (K) in equal amounts. Then it must be the case that g = C]