a. The production function of clock is shown as follow: Q(L,K) = L0.25 0.75 The marginal product of Labor and marginal product of capital are given as follow: Marginal product of labor = 0.25L-0.75 0.75 Marginal product of capital = 0.75L0.25 K-0.25 Where Q represents output level, L denotes labor input and K denotes capital input. Explain whether the production function exhibits decreasing, constant, increasing or no return to scale. i. ii. The wages of labor is $50 and rental of capital is $150. Calculate the minimum cost required to produce 80 units of clock. b. Why agency problem is more likely to happen in a corporation? Suggest one way to alleviate the agency problem in a corporation and explain how it works. C. Does a firm earn positive economic profit always implies it has positive producer surplus as well? Explain.