Acme Inc. produces widgets according to the production function q = KI/ZLI/z. where K is units of capital input. L is units of labor input, and q is the quantity of widgets produced. Acme can hire capital at a price of $40 per unit and can hire labor at a price of $10 per unit. Which of the following statements is Lot true? The production isoquants are smooth and convex li.e., bowed inwards towards the origin). The production technology exhibits decreasing returns to scale. The marginal product of capital diminishes as the quantity of capital employed increases, with labor input held constant. The marginal product of labor diminishes as the quantity of labor employed increases, with capital input held constant