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“A production function that is homogenous of degree greater than one does not have decreasing marginal returns to its inputs which is why we never draw production functions where the sum of exponents is less than 1.” I inform you that this statement is false. Explain why (for half the points). Explain also (for the other half) why you would have decreasing marginal returns for each input even though the sum of the exponents is more than 1.

This statement is false because it is possible to draw production functions where the sum of exponents is less than 1 and still have increasing mar