Floppy Corp Produces Software Using Two Inputs, Large (700 MB)discs

Essay

Floppy Corp produces software using two inputs, large (700 MB)discs, L, and small (210 MB)minidiscs, S. Its production function is given by: Q = (L/2)+ S where Q is output.
i)Does the production function exhibit constant, increasing, or decreasing returns to scale?
ii)Draw isoquants for Q = 2 and Q = 3. What is the firm's marginal rate of technical substitution?
iii)Suppose small disks cost $3 each and large disks cost $1 each. How many of each type of disk will Floppy Corp use to produce Q = 2? Q = 3?
iv)What is the firm's cost function when small disks cost $3 and large disks cost $1?