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Schach [20]
3 years ago
10

Please explain the basic assumptions of Solow-Swan model of growth.

Business
1 answer:
g100num [7]3 years ago
6 0
<span>One composite commodity is produced.
</span><span>Output is regarded as net output after making allowance for the depreciation of capital.
</span><span>There are constant returns to scale. In other words, the production function is homogeneous of the first degree.
</span><span>The two factors of production, labor and capital, are paid according to their marginal physical productivities.
</span>
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