In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

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In Solow's exogenous growth model, the declining marginal product of capital is the principal obstacle to continuous growth in output per capita. As the amount of capital per worker increases, the additional output generated decreases, eventually leading to a point where the marginal product of capital becomes zero. This is known as the steady state, where output per capita growth stops unless there is an exogenous increase in the rate of technological progress or population growth.

In Solow's Exogenous Growth Model, the Principal Obstacle to Continuous