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What is the marginal product of capital in situation

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Reference no: EM132603452

Assume that a country's production function isY = AK0.25L0.75

The ratio of capital to output is four, the growth rate of output is five percent, and the useful life of capital is 20 years.

Assume the technology constant A = 1.

i. What is the marginal product of capital in this situation?

ii. If the economy is in a steady state, what must be the saving rate?

Reference no: EM132603452

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