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Thank you so much for the help (30 pts). Suppose the production function in a small economy is: Y = AK Eall. = Does this

Thank you so much for the help

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(30 pts). Suppose the production function in a small economy is: Y = AK E"all\". = Does this function exhibit constant returns to scale? Why or why not? Prove your answer. l Derive the formulas for the marginal product of capital, MPK, and the marginal product of labor, MPL Are they diminishing when K and L are increasing? Why or why not and how do you know it? If the economy's total output is $1,000, the total factor productivity, A=40, and labor supply is xed at L: 25, what are the long-run equilibrium real wage, w, and the rental price of capital, r6? w: ||

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