According to the Solow Model, Technological Progress Will Cause Output

question 71

Essay

According to the Solow model, technological progress will cause output to increase for two reasons. What are these two reasons?

---

Definitions:

Production

The act of blending various tangible and intangible inputs, including designs and know-how, to create an end product for use.

Oligopolists

Firms within a market structure where a small number of companies have significant market control.

Collude

To cooperate secretly or illegally with others, typically to deceive or gain an unfair advantage.

Zero Profits

a situation where a firm's total revenues are exactly equal to its total costs, typically occurring in perfectly competitive markets in the long run.