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Problem 1: [5 points] Suppose a piece of land has a general production hmction of f (N) = eN ENZ, where N is the number of workers. Suppose output receives a price of p in a perfectly competitive market. For simplicity, suppose that the supply of workers is perfectly,F elastic and the per-worker wage is equal to zero. LA. [1 point] What is the optimal number of workers N' and the rent to the land? LB. [(1.5 points] Suppose that output must be transported to the port for export cost :3 per unit of distance. Consider a plot of land that is a distance r away from port. What are the rents to the land? LC. [(1.5 points] Beyond what distance :3 would we no longer expect to see land dedicated to production? 1D. [1 point] Now suppose that there are two competing uses for land: milk and almonds. Assume that milk follows the production schedule film?) 2 N %LN2 and almonds follow the production schedule f2(N) = N 922N2. Denote p1; and e; as the per unit output price and the transportation cost for good 1', respectively. Over what distance will land he devoted to mill: and almonds