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thanks in advance Problem 2: Investment (20 points) a. (8 points) You have the following information about a rm: 1)Y=AK-5 L05, 2) A=1, L=360, i=0.06,

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thanks in advance

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Problem 2: Investment (20 points) a. (8 points) You have the following information about a rm: 1)Y=AK-5 L05, 2) A=1, L=360, i=0.06, 1r=0.02, 6:0.1, P =2000, Pk=500. Determine i) the marginal product of capital (MPK), ii) the nominal user cost of capital, iii) the real user cost of capital, and iv) the desired capital stock of the rm (i.e., the optimal level of capital in the steady state, K*)

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