Question: Hi, Can anyone solve this question, step by step ? Peter faces a stationary dynamic optimization problem. He has given a unit of a good

Hi, Can anyone solve this question, step by step

Hi, Can anyone solve this question, step by step ?

Peter faces a stationary dynamic optimization problem. He has given a unit of a good and in each period t, he has to choose the share yt E [0, 1] of the remaining amount of the good at-1 that he is going to consume. To fix ideas, his transition function is a(x, y) = x xy = x (1 y) and his immediate payoffs (which do not change over time) are f(x, y) = (x y). Moreover, there is a discont factor p

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