10. (15 points) Consider the problem of a mining firm over two periods (0 and 1). The firm has access to X 40 units of a mineral resource and must set extraction levels in each period (9o and q), respectively). The firm knows that the per-unit price is Po = 25 in period 0 and correctly anticipates that the price is P in period 1. The firm's marginal cost of extraction is MC(q) =5+qe a) What is the firm's profit (total rent) maximizing extraction plan assuming it applies a discount rate (r = .1)? = 50 b) What are the resource rents the firm earns under the extraction plan you found in part a? 10. (15 points) Consider the problem of a mining firm over two periods (0 and 1). The firm has access to X 40 units of a mineral resource and must set extraction levels in each period (9o and q), respectively). The firm knows that the per-unit price is Po = 25 in period 0 and correctly anticipates that the price is P in period 1. The firm's marginal cost of extraction is MC(q) =5+qe a) What is the firm's profit (total rent) maximizing extraction plan assuming it applies a discount rate (r = .1)? = 50 b) What are the resource rents the firm earns under the extraction plan you found in part a