In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of:

Question

Quizplus · Accepted Answer

In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of capital equals the depreciation rate. This condition ensures that the amount of capital in the economy is optimal, balancing the benefits of additional capital in terms of increased production against the costs of maintaining or replacing depreciating capital.

In an Economy with No Population Growth and No Technological