Suppose that the number of points on an economics mid-term (P) can be characterized by the following production function:
P = 5H – 4B,
Where H is the number of hours spent studying for the exam and B is the number of beers consumed the week before the exam. Does the law of diminishing returns apply to H? To B? What does the typical isoquant look like for such a production function? Is the production function characterized by increasing, decreasing or constant returns to scale? Explain your answers.