1)The US government decides to protect the coal industry. It spends $10 billion yearly for 15 years. The industry starts returning $.3 billion per annum in year 13 and for 50 years following year 13. The Coc is 11%. Derive the decision that is appropriate. 2) Let us say that the protectionism of the coal industry is in the form of a tariff. Talk on the benefits and costs of a tariff. Do the benefits exceed the costs or vice versa? Ascertain you include the terms of trade. Also, what is an optimal tariff