State the basic assumptions of the Solow model. Derive the condition for steady state level of capital stock in an economy. 

Basic Assumptions of the Solow Model:

The Solow growth model, developed by Robert Solow in the 1950s, is a fundamental framework in economics for understanding long-term economic growth and the factors that drive it. The model makes several simplifying assumptions to capture the essential dynamics of economic growth. Here are the basic assumptions of the Solow model:

1. One-Sector Economy: The Solow model assumes a simplified economy with a single sector, producing a homogeneous output using a single factor of production – capital.

2. Diminishing Marginal Returns to Capital: The model assumes diminishing marginal returns to capital, meaning _____ _________ _____ ______ ________ ___ ________ _______.
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