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A firm uses two inputs, capital (KO) and labor (D), to produce output

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A firm uses two inputs, capital (KO) and labor (D), to produce output. Assume that the marginal product of labor and the marginal product of capital are always greater than zero. The figure below displays two isoquants from the firm's production function. The bundle (L = 1. K = 1) falls on the q=1 isoquant li.e. all bundles on the curve result in one unit of output). The bundle ( L3, K = 2 talls on the q = 2 isoquant. Given this information, which statement below is true? K 2 92 1 O 3 (Note: If no image appears above, click here) The production function exhibits constant returns to scale The production function exhibits increasing returns to scale The production function exhibits decreasing retums to scale There is not enough information available to say which of the above statements is true