In the context of neoclassical growth models, the Inada conditions are often invoked to guarantee certain properties of the model. Which of the following statements best describes these conditions?
1
The Inada conditions state that the marginal product of capital should be negative when the amount of capital is zero and positive when the amount of capital is infinite.
2
The Inada conditions state that the marginal product of capital should be zero when the amount of capital is zero and infinite when the amount of capital is infinite.
3
The Inada conditions state that the marginal product of capital should be infinite when the amount of capital is zero and zero when the amount of capital is infinite.
4
The Inada conditions state that the marginal product of capital should be constant, regardless of the amount of capital.