In doing this problem, it helps to remember a few rule about exponents. The rst rule is that. for any positive number B, (B")5 = B\" (in words, B raised to the power n raised to the power 5 equals B raised to the power n times s). Two other rules are E1 = B (B raised to the power one just equals B), and B0 = 1 (B raised to the power zero equals 1). You'll need to use each of these rules below. a) Suppose that a firm's production function is given by Q = KmL\"2 = (KL)"2. This production function exhibits Q A. increasing returns to scale Q B. decreasing returns to scale L C. constant returns to scale b) Suppose that r = w = 2, so that production cost in terms of K and L can be written 2K + 2L. Just as in that previous problem, the isoquant slope MPL/MPK is equal to -K/L, so that equating the isoquant slope to the -1 slope of the isocost line yields K = L. Substitute K = L in the production function Q = (KL)"2 t Then use the resulting equation to solve for L as a function of Q. using the exponent rules from above This relationship gives the cost-minimizing L as a function of Q. This function has the form L = de . where the multiplicative factor b = E and the exponent d = E (use the above exponent rules). Since K = L, the same function gives K as a function of Q: K = no\". c) Now substitute your solutions into the cost expression 2K + 2L to get cost C as a function of O. This function is given by C(Q) = go\