Question: 1. What are two assumptions that a production function must satisfy? 2. Define what does mean by constant returns to scale (CRS) and check if

1. What are two assumptions that a production function must satisfy? 2. Define what does mean by constant returns to scale (CRS) and check if given production function follows CRS. ? 3. The slope of this production function with respect to capital (dy/dx) indicates how much additional output is obtained from an extra unit of capital while holding oter inputs as constant. This amount is called? 4. In equilibrium, the marginal product of labor equals and the marginal product of capital equals? 5. The factor demand (Demand for labor and capital) by the firm is determined by? 6. Plot demand for labor and capital graphs. Assuming fixed supply for labor and capital and show equilibrium wage and rental rate

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