In the Solow Model, the prediction that economies eventually converge is due to which of the following properties of the model? O high fixed costs low fixed costs diminishing marginal productivity increasing returns to scale

In the Solow Model, the prediction that economies eventually converge is due to which of the following properties of the model? O high fixed costs low fixed costs diminishing marginal productivity increasing returns to scale

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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Question

Answer only if ? sure. I will rate accordingly. Give short explanation and solve fast.

I think, Option c is wrong.

In the Solow Model, the prediction that economies eventually converge is due to
which of the following properties of the model?
O high fixed costs
low fixed costs
diminishing marginal productivity
increasing returns to scale

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