Question: Peter is a developing country with an infant manufacturing sector. he has a production function of Y = 50K0.7L0.3. where L is labour and K

Peter is a developing country with an infant manufacturing sector. he has a production function of Y = 50K0.7L0.3. where L is labour and K is capital. a. Calculate the real rate of return for capital. b. Recently, the government of Roland relaxes her immigration policy by allowing imports of foreign workers. Based on the answer in (a), will a typical capital owner in Roland benefit from this change? Explain.

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