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3: Consider the following production function: Y = A(KL)^0.5, where Y is production, A is productivity, K is capital, and L is labor. Let w

3: Consider the following production function: Y = A(KL)^0.5, where Y is production, A is productivity, K is capital, and L is labor. Let w denote the wage rate and r denote the rental rate of capital. Solve for the equilibrium w and r in terms of A, K, and L (Show every step of all calculations). Now assume A= 1, K = 15, and L = 23. What is the value of w and r? How the results will change if A increases permanently to A = 2? Comment on your results

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