1.

Suppose you are a worker in the construction industry in the state of Sonora, Mexico. The MPL in this industry is ^1/2 square root of ^Kc/Lc, where K_c andL_c are the amounts of labor and capital, respectively, in the indus-

try. If Sonora has 30,000 construction workers and 120,000 units of construction capital, what is your MPL (and hence your real wage)?

2.Suppose you're interested in immigrating to the bordering US state of Arizona, and working in construction there. Assuming the formula for MPL remains the same, if Arizona also has 30,000 construction workers, but 480,000 units of construction capital, what would your MPL (and hence your real wage) be upon immigrating?