Question: 5 3. (5 marks) Suppose Hawking is a developing country with an infant manufacturing sector. She has a production function of Y = 30K0.7103. where

3. (5 marks) Suppose Hawking is a developing country with an infant manufacturing sector. She has a production function of Y = 30K0.7103. where L is labour and K is capital. a. Calculate the real rate of return for labor. (2 marks) b. Suppose a billionaire donates a substantial amount of manufacturing machines to Hawking. Based on your answer in (a), will a typical labor in Hawking benefit from the donation? Explain

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