A Production Function That Assumes a Diminishing Marginal Product of Capital

question 5

Multiple Choice

A production function that assumes a diminishing marginal product of capital

• A)generates a straight savings line
• B)ensures that the savings line is always above the investment requirement line
• C)ensures that the savings line and the investment requirement line cross
• D)is essential to the endogenous growth model
• E)violates important microeconomic principles

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