Assume that Brazil and the United States have different production functions, where q is output per worker

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Assume that Brazil and the United States have different production functions, where q is output per worker and k is capital per worker. You are told that relative to the United States, Brazil has an output per worker of 0.40 and capital per worker of 0.33. 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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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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