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Consider the canonical Becker and Murphy (1988) rational addiction model Display optimal consumption as a function of S, c(S), for an addict. Assume that c(0)

Consider the canonical Becker and Murphy (1988) "rational addiction" model

Display optimal consumption as a function of S, c(S), for an addict. Assume that c(0) > 0. Label this function "c(S)." Indicate the unique positive consumption steady state equilibrium level of S, labelling it S .

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