This question is with reference to the alpha (which is the shares of output companies compensate labor and capital with, expressed with values between 0 and 1) in the Cobb-Douglas production function: F(K,L) = KαL1-α
If a country has a capital-to-labor ratio of 1000:1 in comparison to another country which has a ratio of 500:1, what does it imply in terms of the alpha of the Cobb-Douglas function?
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