Question: The attached problem please 2. Supposed that consumer willingness to pay for timber is constant over time, and can be represented by the following inverse

The attached problem please

The attached problem please 2. Supposed that consumer willingness to pay for

2. Supposed that consumer willingness to pay for timber is constant over time, and can be represented by the following inverse demand function: P = 400 - 0.1Q, where P is the price per tonne of timber (in dollars) and Q is the quantity of timber (in tonnes). The marginal cost of harvesting timber is also stable over time, and can be represented as MC = 100, in dollars per tonne a) Graph the inverse demand and marginal cost curves for timber. b) Determine the optimal amount of timber extraction this year (n=0), in year 1 (n=1), year 2 (n=2), and year 3 (n=3). c) Calculate the sum of present values of net benefits from timber harvest within four years (n=0, n=1, n=2 and n=3), using a 5% discount rate. Please indicate the area of net benefit in the figure

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