The law of diminishing returns in the Solow model implies that for sustained long-term economic growth to occur, a country needs to:

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The law of diminishing returns in the Solow model states that as the amount of capital increases, the marginal product of capital decreases, leading to diminishing returns to capital. This implies that sustained long-term economic growth cannot be solely achieved by increasing the quantity of capital. Instead, a country needs to have technological progress which increases the efficiency and productivity of capital and labor, leading to sustained economic growth.

The Law of Diminishing Returns in the Solow Model Implies