Problem C

1. A firm faces the production function Q = 5LK. The wage rate is 2 and the rental rate of capital is 3. A. (3 points) What type of returns to scale does the production function above display (increasing, decreasing) or constant)? Justify your answer. Constant, there's a proportional increase in output B. (2 points) Set up the Lagrangian for minimizing the cost of producing 750 units of output. C. (8 points) Using differential calculus and algebra, find the minimum cost input combination of capital and labor for producing 750 units of output