7. M. Smith can invest capital in $100 increments and has three alternative uses for the capital, as shown in the following table. The values in the table are the marginal value products for each successive $100 of capital invested. Capital invested First $100 Second $100 Third $100 Fourth $100 Firth $100 Sixth $100 Fertilizer Seed Chemicals $400 $250 $350 300 200 300 250 150 250 150 105 200 100 90 150 40 60 90 a. If M. Smith has an unlimited amount of capital available and no other alternative uses for it, how much should be allocated to each alternative? b. If M. Smith can borrow all the capital needed for 1 year at 10 percent interest, how much should be borrowed and how should it be used? c. Assume that M. Smith has only $700 available. How should this limited amount of capital be allocated among the three uses? Does your answer satisfy the equal marginal principle? d. Assume that M. Smith has only $1,200 available. How should this amount be allocated? What is the total income from using the $1,200 this way? Would a different allocation increase the total income?