Consider the canonical Becker and Murphy (1988) “rational addiction” model Display optimal consumption as a function of

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answerhappygod
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Consider the canonical Becker and Murphy (1988) “rational addiction” model Display optimal consumption as a function of

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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) > 0. Label this function “c(S).”
Indicate the unique positive consumption steady state equilibrium
level of S, labelling it S ∗ .
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