Question: Production function: Y=K 0.5 L 0.5 with K = 100 and L = 100. 1. compute Y 2. compute MPK and MPL 3. compute the

Production function:Y=K0.5L0.5with K = 100 and L = 100.

1. compute Y

2. compute MPK and MPL

3. compute the labor share of output 4. imagine L decreases to 50, compute the new level of output, new MPK and MPL

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