In economic theory, the following model is used to describe a possible capital investment policy. Let f(t)

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In economic theory, the following model is used to describe a possible capital investment policy. Let f(t) represent the total invested capital of a company at time t. Additional capital is invested whenever f(t) is below a certain equilibrium value E, and capital is withdrawn whenever f(t) exceeds E. The rate of investment is proportional to the difference between f(t) and E. Construct a differential equation whose solution is f(t), and sketch two or three typical solution curves.

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Calculus And Its Applications

ISBN: 9780134437774

14th Edition

Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar

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