Question: Quest ion Consider a rm's production function: q = Ll/2 + K1/2 where q denotes output and L and K represent labour and capital respectively.

Quest ion Consider a rm's production function: q = Ll/2 + K1/2 where q denotes output and L and K represent labour and capital respectively. a) [5 marks] Show that this production function exhibits positive marginal products With respect to L & K , along with diminishing marginal returns. Also, comment on the returns to scale. b) [5 marks] Solve for the rm's cost-minimizing factor demands for labour and capital and calculate marginal cost. 0) [5 marks] Prove that your optimized results produce a level cost that is minimized

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