5 (24 points) In a remote area there are two companies: company A provides tours of a provincial park and company B mines ore nearby. The mining company has the production function = 5 1 3 where is the amount of labour that is hired and is the only input to the production function. Based on local labour markets, [0,8]. Unfortunately, mining is very loud, and for every person that is operating a drill, the noise produced is = 1 2 . The touring company also uses labour as an input, with [0,8]. The skills needed for the two jobs are very separate, so there is no competition in the labour market between the two companies. a) (8 points) First consider the case where the production function for the tour company is = . i. Is there a production externality in this case? ii. Draw the PPF for the two companies, with mining on the x axis and tours on the y axis. iii. How much would the two companies decide to produce? (Assume that there is a fixed cost of labour that does not depend on how many people are actually hired). b) (10 points) Now