Question: 2. Unexpected Failure Consider a firm which lives for two periods t = 1, 2 and faces uncertainty over the capital depreciation rate :52 in

2. Unexpected Failure Consider a firm which lives for two periods

2. Unexpected Failure Consider a firm which lives for two periods t = 1, 2 and faces uncertainty over the capital depreciation rate :52 in period 2 according to _ _ 1. with prob. g 2 _ n, with prob 1 q where l]

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