Economics students often confuse (a) diminishing returns related to the variable factors of production and (b) diseconomies of scale. Explain the difference between the two and give one example of each.

From the following production functions 1. Q= a1H + a2L + a3H2 + a4 L2 + a5HL, where  ai> 0 2. Q = aH@ Ly, where a, @, y > 0 a. Derive the equation of the relevant isoquant.   b. Find out whether the production function is well behaved. c. Examine whether the isoquant is well behaved and therefore represents the behaviour of a rational production.  d. Derive equation which describes MRTS of 9ne factor. e. For each equation examine whether the production is homogeneous and if so, what is the degree of homogeneity. Is the equation characterized by IRTS, DRTS or CRTS.

University level intermediate microeconomics, theory of production

A firm produces according to the following production Function: Q= K^0.4L^0.5. MCK is $10 per K, and MCL is $8 per L. What sort of returns to scale does the firm face? Motivate your answer.