One important assumption of the Neoclassical growth model is that, with a given state of technology,

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The Neoclassical growth model assumes that with a given state of technology, increases in the use of a single factor bring diminishing returns. This means that as more units of a factor, such as labor or capital, are employed in production, the resulting increase in output will at some point begin to slow down and eventually plateau, as the additional factor becomes less and less productive. Therefore, the model assumes that sustained economic growth can only be achieved through technological progress or increases in all factors of production in proportion to each other.

One Important Assumption of the Neoclassical Growth Model Is That