Assume a Cobb-Douglas production function with a capital share of 1/3, a labor share of 2/3, and a productivity parameter equal to 1. Prepare Excel worksheets reporting the level of level of output and the marginal productivity of capital assuming that the capital stock increases from 60 to 360 in increments of 10 and labor equals 100. Compare these calculations to

• Labor equals 100 and productivity parameter equals 2
• Labor equals 200 and productivity parameter equals 1

What is the effect of an increase in the productivity parameter on the marginal productivity of capital? What is the effect of an increase in labor on the marginal productivity of capital?