Question 3 (10 marks) Suppose that the production function is Y = AK0:25L 9.75 in an economy where A is the technological factor, K is capital and L is labour. They are all positive. a. Find the marginal product of labour in terms of A, K and L. Use your answer to explain whether the production function exhibits diminishing marginal return to labour? (4 marks) b. If A =100, K = 625 and L = 16, find the equilibrium real wage. (2 marks) Due to the rapid economic development in the economy, a lot of people from the neighboring countries migrating into the economy, discuss its effect on the return to capital owners. (4 marks) c