1 With the use of a suitably labeled diagram, briefly discus the relationship between the short run cost curves (SRMC, SRATC) and long run cost curve with different plant size (plants 1 to 4) and show the position of plant 3 as an the optimal plant size. Q2 . Calculate the present value of a forest land worth K200,000 to be received at the end of ten years if the discount rate is 5%? b. Suppose a farmer who has the opportunity to buy a farm land for 200,000 and sign a contract now to sell the farm land for K300,000to someone else at the end of five years. Would you advise the farmer to to ahead and buy this farm land