2.1 Theory Suppose that apricultural output y on a farm depends on the effort exerted by the tenait. Output is given by the function: y=ln(c) where e is the effort level . The tenant decides the amount of effort to exert and pays a marginal cost e per unit of effort. The owner of the fitrm receives a share a of total output, with 01. (c) What in the difference between the first best and the level of cffort of the tenant? How doen it depend on: (i) , (ii) the marginal cont o. Explain intuitively why. [5 points] 2.1 Theory Suppose that apricultural output y on a farm depends on the effort exerted by the tenait. Output is given by the function: y=ln(c) where e is the effort level . The tenant decides the amount of effort to exert and pays a marginal cost e per unit of effort. The owner of the fitrm receives a share a of total output, with 01. (c) What in the difference between the first best and the level of cffort of the tenant? How doen it depend on: (i) , (ii) the marginal cont o. Explain intuitively why. [5 points]