Question: Consider a company witch production function is given by \[f(K,L)=a\sqrt{KL}\], where K is the used capital, L the quantity of used work and a a positive constant.

a) Do this function has increasing, decreasing or constant return to scale.

b) Graph the isoquants of these function.

c) If the costs of the production factors K and L are respectively w₁ and w₂, both positives, witch will be the minimum production cost of a quantity y, and the corresponding quantity of production factor used. Represent the solution graphically.

d) Witch are the fractions of the production cost waste with each production factor. Express the result verbally.

e) Interpret the effect of w₁, w₂ and y in the cost and in the quantity of production factors.