Is it possible that a firm's production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs? To answer this question, calculate the marginal productivities of capital and labor for the production of Crocs using the production function
q=AL^αK^β=21.5L^0.85K^0.5
A.) This production function exhibits: (Increasing or Diminishing?) marginal product for labor and (Increasing or diminishing?) marginal product for capital?
B. This production function exhibits (increasing, decresing, or constant?) returns to scale?
C. Therefore, a production function (can or cannot?) exhibit diminishing marginal returns while exhibiting increasing returns to scale.
