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Find the planned level of capital stock

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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).

Reference no: EM133063336

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