Math Problem Statement
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Solution
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Math Problem Analysis
Mathematical Concepts
Calculus
Optimization
Macroeconomics
Formulas
c* = (1 - s) A^(1-α) (s/δ)^(α/(1-α))
Derivative using product rule: d/ds [c*(s) = (1 - s) f(s)]
f(s) = A^(1 - α) (s/δ)^(α/(1 - α))
Theorems
First-order condition for optimization
Solow growth model
Suitable Grade Level
Undergraduate Economics or Graduate-level Macroeconomics
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