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Assume a Cobb-Douglas production function where the share of capital and labor is each 1/2.
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14. Assume a Cobb-Douglas production function where the share of capital and labor is each 1/2. If the growth in total factor productivity is zero and labor and capital each grow by 2%, then

A) output growth is 4% and the marginal product of capital is Y/K B) output growth is 2% and the marginal product of capital is Y/(2K) C) output growth is 2% and the marginal product of labor is (2Y)/N D) output growth is 1% and the marginal product of labor is Y/(2N) E) output growth is 1% and the marginal product of capital is (2Y)/K Ans: B
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