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Suppose That the Production Function Is Y = AK²/⁵ᴸ³/⁵

Question 20

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Suppose that the production function is Y = AK²/⁵ᴸ³/⁵.Assume that real GDP is $5000 billion,capital stock is $15 000 billion,and the labour supply is 75 million workers.What are the values for the marginal product of labour and the marginal product of capital? Show this data graphically.

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MPK = 2/5 (Y/K)= 2/5 ($5000 bi...

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