The production function is y = LaK¹/aK¹¹/a and (p = $10,w = $20, r = $15).
(i) Show whether the production exhibits DRS or CRS or IRS.
(ii) Obtain the Marginal Rate of Technical Substitution (MRTS).
(iii) Find (Lº, Kº) to minimize the cost in producing given output, y=100.
