A production process using two inputs, labor and capital, can be written as:
Q = 5LK;
Where Q represents output per day (tons). The unit costs of inputs are $150 for labor (L) and $1,000 for capital (K).
a. Determine the least cost combination of L and K if the firm decides to produce 1,000 tons per day.
b. What is the total cost of producing $1,000 tons per day?
c. Is this an increasing, decreasing or constant return to scale production function?