Question 11 (2 points)
Consider the following Cobb Douglas production function: $Y = 2K^{0.25}L^{0.75}$
Assume that the stocks of labor and capital in this economy are $L = 625$ and
$K = 16$, respectively.
Recall that in the generic Cobb-Douglas production function $Y = AK^\alpha L^{(1-\alpha)}$
we have that $MPL = (1 - \alpha)AK^\alpha L^{-\alpha}$ and
$MPK = \alpha AK^{(\alpha - 1)}L^{(1 - \alpha)}$.
The real income received by workers in this economy is
(enter a number with no decimal points)
The labor's share of national income is
(use two decimal places)
