3. Consider the following production function Y = F(K1, N.): %3D Y = F(K,, N) - yK-bp) [N, + (p 1)K]p where Y, is output, K, is physical capital, N, is labor, and y > 0, 0 < a < 1, d > 0 and p> 0 are parameters with ad < 1. Note that the subscript denotes dependence with respect to time (i.e., those variables change over time). (a) Assume p- 1 and take Kt as given. Determine the marginal product of labor. (b) Still assuming p - 1, would this function make a good production function, in the economic sense discussed in class? Argue, in favor or against, using the mathematical concepts reviewed in class and provide an economic intuition.