Question: Explain clearly Question 33 (5 points) (5 Points) Ela lives on an island and has 30 coconut trees in the current period, which currently produce

 Explain clearly Question 33 (5 points) (5 Points) Ela lives on

Explain clearly

an island and has 30 coconut trees in the current period, which

Question 33 (5 points) (5 Points) Ela lives on an island and has 30 coconut trees in the current period, which currently produce 200 coconuts. Ela doesn't like coconuts, but she can trade them with Bora for things that she wants. Also, Ela can borrow and lend coconuts with Bora at r=5%. In each period, Ela's trees produce, and then 10% of them die. If Ela plants a coconut in the current period, it will grow into a productive coconut tree in the future period. At the end of the future period, Ela can sell any remaining coconut trees for 1 coconut each. When Ela plants coconuts in the current period, she plants them in successively less fertile ground, and the less fertile the ground, the less productive the coconut tree. For simplicity, assume that fractions of coconuts can be produced by trees. Output in the future period (the second period), for given numbers of trees in production in the future period (the second period), is given by the table below: Future Periods Future Trees Future Output (a 20 180 (b) 25 190 (c) 29 205 a) Determine the required investment for each optional future period (for each quantity of future trees). (To have your mark in this question, you NEED to show your calculation and solution (with all the steps) in the midterm exam file posted under Assessment- Assignment) O a) (a) 7(b) -2 (c) -1 O b) (a) 3 (b) 2 (c) - 1 O c) (a) -3 (b) -2 (c) -1 Od) None of the answers are correct O e) (a) -7 (b) -2 (c) 2

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