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Please not that this is 50,000^(3/2) and not 50,000^(-3/2), thank you Suppose that a firm begins at time t = 1 with a capital stock
Please not that this is 50,000^(3/2) and not 50,000^(-3/2), thank you
Suppose that a firm begins at time t = 1 with a capital stock of K (1) = 200,000 and, in addition to replacing any depreciated capital, is planning to invest in new capital at the rate I (t) = 50,000t3/2 for the forseeable future. Find the planned level of capital stock T years from now. Will this firm's capital stock grow without bound as T - co? Explain your answer, provide the detailed steps (you may use a graph as well)Step by Step Solution
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