Question: 1 1 1. Consider a producer with the production function y = LZK 1. (a) The quantity of L is xed at 16 in the

1 1 1. Consider a producer with the production function y = LZK 1. (a) The quantity of L is xed at 16 in the short run. Find the cost function as a function of the output y and prices of the inputs w = l and r = 4. (b) Calculate the average cost function and marginal cost function. (c) Now suppose that both inputs can be changed. Calculate the cost, average cost and marginal cost functions. ((1) Does this production function exhibit decreasing, increasing, or constant returns to scale

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