Assume that a competitive economy can be described by a


Question: Assume that a competitive economy can be described by a constant returns to scale (Cobb-Douglas) production function and all factors of production are fully employed. Holding other factors constant, including the quantity of capital and technology, carefully explain how a one-time, 10 percent increase in the quantity of labor (perhaps the result of a special immigration policy) will change each of the following (EXPLAIN): labor's share of total income?

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Microeconomics: Assume that a competitive economy can be described by a
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