Question: Suppose the production function is Y = 100K0.25L0.75 a. b. Find the real rental rate (r, in terms of K and L) paid to

Suppose the production function is Y = 100K0.25L0.75 a. b. Find the real rental rate (r, in terms of K and L) paid to a capital owner. (Hint: MPK=dY/dk) If K=81 and L=16, find: i. Y and r ii. the total income of all capital owners iii. the fraction of total income shared by all capital owners

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