Question: 4. Consider the production function f(L,K) = 10L0.25K0.25. The price of a unit of labour, L, is w=1. The price of a unit of capital,

4. Consider the production function f(L,K) = 10L0.25K0.25. The price of a unit of labour, L, is w=1. The price of a unit of capital, K, is r=16. a) Does this production function exhibit increasing, decreasing or constant returns to scale? b) Find the conditional input demand functions for labour and capital. c) Find the cost function. d) What quantity will the firm supply if the market price is 8

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