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Consider a perfectly competitive economy with a production function Y = AK/*LS/*. There are 16 workers who produce cream cheese (a numeraire good) with 81
Consider a perfectly competitive economy with a production function Y = AK/*LS/*. There are 16 workers who produce cream cheese (a numeraire good) with 81 units of capital. If the productivity parameter is equal to 4, the economy produces - units of cream cheese.In this same economy and assuming that the markets for capital and labor are perfectly competitive, total payments to capital (i.e. rk ) equal units of cream cheese
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