Juu Pnuuubu . 7. j . . Consider a rm that produces a single output using two inputs according to the following production function: f(K, L) = min(2K, L) where q is the rm's output, K is machinery (measured in machine-hours) and L is the labor supply (measured in man-hours). Let U be the cost of one machine- hour and let 11; be the cost of one man-hour. (a) (3 points) Does the rm's technology exhibit increasing returns to scale? Explain carefully. (b) (3 points) Draw the isoquant corresponding to the output of 10 units. Be sure to label important features in the diagram. (c) (3 points) Suppose that 1,! = 16 and m = 4. Determine the firm's cost function T0(q). (d) (6 points) Plot the rm's cost curve TC(q), average cost curve AC(q) and marginal cost curve MOE)