The marginal product of capital is given by a yk setting
Based on the following Cobb-Douglas production function where Y TFP L0.7 Ka. The marginal product of capital is given by a Y/K. Setting TFP and L 1, examine the behaviour of the MPK as it varies between 0.3 and 1.
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based on the following cobb-douglas production function where y tfp l07 ka the marginal product of capital is given by
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