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QUESTION 10 10 points Save Answer Afirm has the following production function: q2K3/5L3/5 where q is the units of output the firm produces, K is the number of machines it uses, and L is the number of labor hours it hires. The rm is small and can buy as many machines as it needs, hire as many labor hours as necessary, and sell as many units of output it finds optimal without affecting the prices of capital, labor, and/or output. (a) Does production exhibit diminishing marginal returns to labor? (b) Does production exhibit diminishing marginal returns to capital? (0) Are firm's isoquants convex (bowed inwards)? if so, why does the MRTS decrease as we move downwards (to the right) along the isoquant? (d) Does production exhibit increasing, decreasing, or constant returns to scale? (e) lfthe firm increases m inputs by 100% (l) Will the resulting percentage change in output be greater, smaller, or equal to 100%? (ii) Will firm's profit increase, decrease, or stay the same? Explain