In the nation of Wooknam, the capital share of GDP is 40 percent, the average growth in output is 5.0 percent per year, the depreciation rate is 7.0 percent per year, and the capital–output ratio is 4.5. Suppose that the production function is Cobb–Douglas and that Wooknam has been in a steady state.
Round answers to two places after the decimal when necessary.
b. In the initial steady state, what is the marginal product of capital (MPK)?