Countries that start with very little physical capital will get a:

Question

Quizplus · Accepted Answer

The concept of diminishing marginal returns states that as more units of a factor of production (such as capital) are added to a production process, the marginal product of that factor will eventually decrease. Therefore, a country starting with very little physical capital will likely experience a higher return from adding a unit of capital, as the initial input of capital will likely have a larger impact on the productivity of their economy.

Countries That Start with Very Little Physical Capital Will Get