A custom harvesting firm is considering adding another tractor to its fleet; each tractor is rented for $1800 per day. Assume that the additional tractor would be capable of harvesting 100 acres per day and that each acre that is harvested brings in $25 in revenue. Also assume that adding the tractor would not affect any other costs.

1.Calculate the MRPc. Show your work.

2.Should the firm add this tractor? Explain your answer.

3.Suppose the revenue drops to $20 per acre harvested. Should the firm add the tractor in this scenario? Explain your answer.

4.A firm invested $750 at 6% interest. What will be the balance for the investment after 7 years? Show your work.

5.You need $50,000 to purchase a truck in 10 years. How much money would you have to put in a savings account earning 5 percent interest so you could pay cash for the truck?

6.List the four main policy tools leveraged by governments to enable the agricultural industry. Describe how each can be used and the result on the industry.