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1. Assume the following Cobb-Douglas production function: Y=0.5K0.2L0.8. If L=100, a. What is the marginal product...

1. Assume the following Cobb-Douglas production function: Y=0.5K0.2L0.8. If L=100,

a. What is the marginal product of capital?

b. With your answer in (a), can you prove diminishing marginal product of capital?

c. Estimate real capital income

d. Estimate the share of real capital income

d. Estimate the share of real capital income

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