Question 1 Consider the production function: F{L., a) = Li'i. Suppose the wage rate {price per 1mit of labour}, is, is 2 and the capital rental rate [price per unit of capital}, r, is 1. {a} Does this production function exhibit increasing, decreasing or constant returns to scale? Explain. {b} {If you would like to1 you can do part [c] rst and use your answer to (c) to answer this question.) Find the total cost of producing 32 units of output. {c} Find the total cost, average cost and marginal cost of producing 3; units of output. Is the average cost increasing or decreasing in 3,"? Is the marginal cost higher or lower than the average cost