A firm discovers that when it uses K units of capital and L…

A firm discovers that when it uses K units of capital and L units of labor it is able to produce q=K3/4L1/4 units of output.   The firm currently operates with KSR=5 units of capital and wants to produce qSR=100 units of output. How much labor does the firm need to hire and what is the total cost of producing the 100 units? (10 pts)

A firm discovers that when it uses K units of capital and L…

A firm discovers that when it uses K units of capital and L units of labor it is able to produce q=K3/4L1/4 units of output. Assume w=4 and r=1.    (a) Does the production function (q=K3/4L1/4) exhibit constant, increasing or decreasing returns to scale and why? (3pts)