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You own a fleet of offshore fishing boats and you nee to determine how many fishing poles you need to buy to maximize profits. Please

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You own a fleet of offshore fishing boats and you nee to determine how many fishing poles you need to buy to maximize profits. Please answer the following questions given the information below. Please be sure to SHOW all work! A brand new fishing pole costs 400 fishing hours (this is your output) and the rate of depreciation is 10% (0.10). The real interest rate is 2% (.02). And the expected marginal product of capital is given by MPK = 300 - 5K. The firm also faces an effective tax rate on capital, what we call tao (T) = 20% (.20) a) What is the (tax adjusted) user cost of capital and what is this user cost expressed in? (Show work) (5 points) b) How many fishing poles should you buy to maximize profits? Show work (5 points) Draw a uc/K graph depicting the state of affairs and label this initia profit maximizing condition as point A. A correctly drawn and completely labeled diagram is worth 10 points

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