A firm has a production function of Q(K,L) = K04L0.6 a) Explain the concept of returns to scale. Does the function provide increasing, decreasing, or constant returns to scale? b) Provide an example...

A firm has a production function of ?(?,?) = ??.???.? a) Explain the concept of returns to scale. Does the function provide increasing, decreasing, or constant returns to scale? b) Provide an example of a typical sector with increasing returns to scale. c) Explain the concept of MRTS and argue whether the MRTS for this production function is diminishing. Please also provide a graphical illustration using numbers.

Extracted text: A firm has a production function of Q(K,L) = K04L0.6 a) Explain the concept of returns to scale. Does the function provide increasing, decreasing, or constant returns to scale? b) Provide an example of a typical sector with increasing returns to scale. c) Explain the concept of MRTS and argue whether the MRTS for this production function is diminishing. Please also provide a graphical illustration using numbers.