Question: 1. 5.6 Is it possible that a firms production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs?

1. 5.6 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 U.S. tobacco products, Japanese synthetic rubber, and New Zealand mining, using the information listed in the Application

“Returns to Scale in Various Industries.” M

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