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I do not know how to drive ii and iii B. Now assume the production function is Y = KL'H' , Ol=1/3 where H is
I do not know how to drive ii and iii
B. Now assume the production function is Y = K\"L'H' , Ol=1/3 where H is the number of college degrees K is paid its marginal product, a worker without a college degree is paid the marginal product of L, and a worker with a degree is paid the marginal product of L plus the marginal product of H. Suppose again that immigration causes L'to double. None of the immigrants has a college degree. Show Whether each of the following variables rises, falls, or stays the same: (i) the wage of a worker without a college degree (ii) the wage of a worker with a college degree (iii) the average wage of all workers Again, prove your answers by deriving expressions fOr the variable before and afer immigration and comparing them. If more than one answer is possible, prove thatStep by Step Solution
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