Final answer:
Yes, a technology can exhibit increasing returns to scale even though all of its marginal products are diminishing. An example of this is the internet.
Step-by-step explanation:
Yes, a technology can exhibit increasing returns to scale even though all of its marginal products are diminishing. Increasing returns to scale refers to a situation where output increases at a faster rate than the increase in all inputs. Diminishing marginal product, on the other hand, refers to a situation where each additional unit of input produces less additional output.
An example of a technology that exhibits increasing returns to scale despite diminishing marginal products is the internet. As more and more people use the internet, the value and benefits that can be derived from it increase exponentially. Each additional user may add less marginal benefit, but the overall output and societal impact of the internet continue to grow.
Therefore, the presence of diminishing marginal products does not necessarily mean that a technology cannot exhibit increasing returns to scale.