National Income: Where It Come: From and 1When-ell: Goes End of Chapter Problem I 1 An economy has the following CobbDouglas production function: Y = 10014: 3 L3. The economy has I25 units of capital and 64 units of labor. :1. Calculate this economy's output. I}. What is capital's share of income a? c. What is labor's share of income l-u'? d. Calculate the marginal product of capital MPK. e. Calculate the marginal product of labor (MPH. f. [fthe economy increases the amount of capital: Output is units. Capital's share of income is , i Labor's share of income is - MPK = MPL = i. the capital share , . i the real rental price of capital