Question: Suppose that the production function for an economy is given by Y = AKbHcN1-b-c. The marginal product of physical capital, MPK, is given by the

Suppose that the production function for an economy is given by Y = AKbHcN1-b-c. The marginal product of physical capital, MPK, is given by the formula bAKb-1HcN1-b-c and the marginal product of human capital, MPH, is given by the formula cAKbHc-1N1-b-c. It is assumed that each unit of each factor is paid its marginal product. Find the shares of both physical and human capital in GDP (in each case the total payment to the factor divided by output).

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