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Business, 01.10.2019 04:00 robert7248
Some economies are able to maintain high growth rates despite diminishing returns to capital by using
a. better or enhanced technology, along with accumulating capital; these economies are growing because technology, unlike capital, is subject to increasing returns.
b. a newer production method that, if used properly, produces increasing returns to capital.
c. a labor-intensive technology because labor, unlike capital, is not subject to diminishing returns.
d. a larger proportion of capital, thereby making their production capital intensive, so the sheer volume of capital protects them from diminishing returns to capital.
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