Question: If we have a standard Cobb-Douglas production function and there is no misallocation, then efficiency implies that rK wL Suppose a = 0.25. According to

If we have a standard Cobb-Douglas production function and there is no misallocation, then efficiency implies that rK wL Suppose a = 0.25. According to our model, if firms optimize then what percentage of input costs should firms spend on labor costs? Enter answer as a percentage (leaving off the % symbol) and rounding to the nearest full integer

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