According to the "new" theories of economic growth, increasing marginal returns to capital investment is
A) impossible because diminishing returns are unavoidable.
B) impossible, and is thus a weak source of growth.
C) possible after initial fixed costs of innovation have been borne.
D) possible only if the capital is government- owned infrastructure.
E) possible, but only in the early stages of innovation before imitators rush in to drive prices down.
Correct Answer:
Verified
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