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3. Consider a firm aiming to maximising total profits from time 0 through infinity. The firm's production function is f(kt) where kt is the capital

image text in transcribed 3. Consider a firm aiming to maximising total profits from time 0 through infinity. The firm's production function is f(kt) where kt is the capital stock at time t. New investment is it, and costs wt. maxt=0(1+r1)t[f(kt)wtit]s.t.kt+1=(1)kt+wt.

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