1.9. Factor payments in the Solow model. Assume that both labor and capital are paid their marginal...

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1.9. Factor payments in the Solow model. Assume that both labor and capital are paid their marginal products. Let w denote ∂F (K, AL)/∂L and r denote

[∂F (K,AL)/∂K] − δ.

(a) Show that the marginal product of labor, w, is A[f (k) − kf

(k)]

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Advanced Macroeconomics

ISBN: 9780073511375

4th Edition

Authors: David Romer

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Question Posted: Nov 14, 2024 05:01 AM

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1.9. Factor payments in the Solow model. Assume that both labor and capital are paid their marginal...

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Advanced Macroeconomics

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