How can consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate labor is L=100 and aggregate capital stock is K=100. The price of output is
1. Calculate the equilibrium wage and capital return.
2. Calculate the total payments to labor and capital.
3. Demonstrate the Euler's Theorem holds, i.e. show that total payments to capital and labor equal the value of output.
4. Discuss what share of output goes to labor and capital?
5. Assume there is an increase in L, what would be impact on capital returns and wages?