What would be the output if you take into account the skill

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Question: Suppose an economy has a production function given by: Y = AK1/3L2/3

Answer the two parts to this question in the space below based on the production function given above. Show your work and provide brief explanation for your answers.

(A) If the capital stock in this economy is 100 and labor is 100 (assuming technology =1), what is the total output? (2 points)?

(B) Suppose you would like to take into account education or skill level of the workers. The general years of education or skill level E in this economy is 10.

(i) Rewrite the production function so that you can take into account the skill level.

(ii) What would be the output if you take into account the skill level or education of the workers

 

Reference no: EM133461128

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