Additional Problem 1: Production Analysis1. A gardenia grower applies successive units of a soil nutrient (the variable input) tohis/her gardenias (the fixed factor) and determines the following yield (total output)in dozens of gardenias.Nutrient(ounces)Gardenias (TP)(dozens)Marginal Output(MP)Average Output(AP)0015029031204140515061557158a. Does this production function exhibit increasing, decreasing, constant returns, orsome combination of the three?b. Assuming the price per dozen of gardenias is $20 and the application of an ounce ofnutrient costs $400 per ounce, if the gardenia grower behaves in a profit maximizingmanner, how many dozens of gardenias will be produced (TP) __________ ;
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