Assume that Brazil and the United States have different production functions q = f(k) where q is
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Assume that Brazil and the United States have different production functions q = f(k) where q is output per worker and k is capital per worker. Let q = Ak1/3. You are told that relative to the U.S. = 1, Brazil has an output per worker of 0.32 and capital per worker of 0.24. Can A be the same in Brazil as in the United States? If not, compute the level of A for Brazil. What is Brazil’s MPK relative to the United States?
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