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How Does the Phenomenon of Diminishing Returns to Capital Explain

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How does the phenomenon of diminishing returns to capital explain the catch-up effect?


Definitions:

Bureaucratic Culture

An organizational culture characterized by formal procedures, hierarchical structure, and a clear division of labor, emphasizing control and authority.

Standardization

The process of making something conform to a standard in order to ensure consistency and compatibility.

Clan Culture

A type of organizational culture that emphasizes family-like relationships, where loyalty, tradition, and values are cherished.

Formality

The degree of adherence to established conventions, rules, or ceremonial procedures.

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