Determine what is the level of output in the country

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Consider a production function for an economy:
Y = 20(L.5K.4N.1)
where L is labor, K is capital, and N is land. In this economy the factors of production are in fixed supply with L = 100, K = 100, and N = 100.

a) What is the level of output in this country?

b) Does this production function exhibit constant returns to scale? Demonstrate by an example.

c) If the economy is competitive so that factors of production are paid the value of their marginal products, what share of total income will go to land?

Reference no: EM13237009

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