1. (20 points) Suppose a group of cattle ranchers each have $100 to spend. The farmers can either purchase a steer for $100, and let it graze in a common grazing area, or they can buy a bond with the $100 which receives an interest rate of 6%. The table below gives the value of each steer after it has been grazing for one year. # of steers Price per steer Total Value of the Steers Marginal Value of This Steer 1 $133 2 $128 3 $123 4 $118 5 $113 6 $108 7 $102 a) (14 points) Fill in the two blank columns above. b) (3 points) If the ranchers put their steers in the grazing area one at a time and act only in their self interest, how many steers will be put on the grazing area? c) (3 points) If the ranchers work together to maximize their total income, how many steers will be put on the grazing area?