1. Country A and country B both have the production functions:

= (, ) = ^1/32/3

1. Does this production function have constant returns to scale?
2. What is the per-worker production function, = ()?
3. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country c. B saves 30 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker for each country. Then find the steady-state levels of income per worker and consumption per worker.