Country A and country B both have the production function

Y = F(K,L) = K^1/2L^1/2

a. Does this production function have constant returns to scale? Explain.

b. What is the per-worker production function, y = f(k)?

c. Assume that neither country experiences population growth or technological progress and that

5 percent of capital depreciates each year. Assume further that country A saves 10 percent of

output each year and country B saves 20 percent of output each year. Using your answer from

part (b) and the steady sate condition, find the steady-state level of capital per worker for each

country. Then find the steady state level of income per worker and consumption per worker.