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A firm has current and future marginal productivity of capital given by MPK = 10,017.5 - 1.5K. The real price of capital is 5000, the

A firm has current and future marginal productivity of capital given by MPK = 10,017.5 - 1.5K. The real price of capital is 5000, the real interest rate is 10%, and capital depreciates at a 15% rate. The real price of capital is not expected to change.

(a) The user cost of capital is

(b) The firm's optimal capital stock is

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