ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Show that increasing returns to scale can co-exist with diminishing marginal productivity. K 6 - 5- q = 25,000 4. 3- q = 20,000 2- q = 10,000 q = 5,000 4 5 2) The above figure shows the isoquants for the production of steel. In which regions of production are there increasing, decreasing, and constant returns to scale? F Q 10 20 30 14 40 20 50 3) A firm's production function for pretzels is shown in the above figure. If the firm's fixed cost equals $100 per time period and the wage rate equals $1 per unit of labor per time period, calculate the firm's MC, AVC, and AC schedules. Do these cost functions follow the general rules concerning the relationships between MC, AVC and AC? SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.VC FC 60 100 80 100 90 100 1 10 100 150 100 Table 8.6 4) Refer to Table 8.6. For each level of output, compute average variable cost, marginal cost, average fixed cost, and average total cost