Refer to the truth or falsity of the following statements: 1. In a productive process, it is possible to have diminishing marginal returns to the variable factor, and still have increasing returns to scale.

2. Suppose that, for a certain production process, the marginal rate of technical substitution (MRTS) of K (capital) for L (labor) is 1/3. By how much should the number of workers increase if the utilization of capital is decreased by 6 units, and the level of production is to be kept constant?

3. In the presence of increasing returns to scale, the distance (for proportional increases in output) between isoquants decreases as we move away from the origin; and in the presence of decreasing returns to scale, the opposite is true, i.e., the distance between isoquants is greater as we move away from the origin. Explain with graphs.