Instructions write at least 600 words to explain.
Use of graphs to explain the concepts is compulsory.
Please provide a proper explanation. thank you.
Over the past 100 years or so, the development experience of many countries
is described by two facts: (1) The economyâ€™s capital/labor ratio rises, and (2) The share
of labor and capital in national income are roughly constant. How can this be? What do
these two empirical facts suggest about the form of the production function? (Hints: (1) The
share of labor is w Â· L/Y and the share of capital is R Â· K/Y , (2) Assume factor markets are
competitive, so factors are paid their marginal products).