A key assumption of the Solow Growth Model is that:   (a) the marginal product of capital diminishes as additional units of capital are added;   (b) output per capita declines as a nation’s capital to labor ratio increases;   (c) the marginal product of labor tends to rise as additional units of labor are added;   (d) capital tends to depreciate at an increasing rate as a nation’s output increases.

ENGR.ECONOMIC ANALYSIS
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A key assumption of the Solow Growth Model is that:

 

(a) the marginal product of capital diminishes as additional units of capital are added;

 

(b) output per capita declines as a nation’s capital to labor ratio increases;

 

(c) the marginal product of labor tends to rise as additional units of labor are added;

 

(d) capital tends to depreciate at an increasing rate as a nation’s output increases.

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