2. [40 point] answer the following questions! a. Explain the concept of increasing return to scale (IRTS) of production function and what is the implication of IRTS on the average and marginal cos! Why the firm who has IRTS production technology will be a champion in the industry? What the source of IRTS technology? (6 points) b. Find the elasticity of substitution and explain the meaning of this elasticity of the following production function: (7 points) q = Ko.5 + 10.5 c. In the general equilibrium theory, why do consumer and producer interact each other to determine the equilibrium? using the Edgeworth box explain that voluntary exchange can improve the welfare of society! Explain the concept of Feasible Allocation, Pareto Optimal allocation, Core Allocation and Competitive Allocation! (7 points) d. A firm has the following production technology/ function: q (Z1. Zz) = azz + bzz where Z is the input of good-1, Z, is the input of good-2, w and weare the input price of good-land good-2 respectively and P is a price of product. Find the input demand function, the supply function and the profit function! (20 points)