Question: Assume technology is a constant value equal to 1. Labor share of total GDP in US is around 2/3 , capital share is 1/3. If

Assume technology is a constant value equal to 1. Labor share

Assume technology is a constant value equal to 1. Labor share of total GDP in US is around 2/3 , capital share is 1/3. If US production process follows a Cobb Douglas production function: 1. What would the production function be? 2. How does this production function return to scale ( prove your statement) ? 3. Complete the following table Total Output Marginal Product of Capital L = 100, K = 27 L = 100, K = 64 L = 100, K = 125 4. Compare and explain the effects of increase in capital input on overall output and MPK

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