A farming family owns some land. The following information is givento you:

1. There are six people in the family.
2. In any year, the equivalent of two people isneeded to farm each acre of land that the family owns.
3. The going wage (which each person can earn if he or she so chooses) is $1000.
4. Each acre of land produces $3000 worth of output (if it is farmed properly by twopeople, as earlier stated).
5. The family is always free to lease out land (i.e., charge a rent and give up the outputto a tenant), but the outside option for tenants is $1100 per person.
6. The family can always hire labor (instead of leasing), but hired labor is useless withoutsupervision, and to hire one supervisor to monitor labor (irrespective of the number oflaborers that you hire or acres that they work), costs $2000 per year.

1.Calculate the maximum rent per acre the family can hope to obtain by leasing out land.

2.For simplicity, suppose that the family can either lease out all the land or none of the land, and that land comes in integer units of acres (for example, a family could have 5 or 6 acres, but not 5.5). For a six-person family, what is the minimum acreage necessary for it to be optimal to lease out land? Assume that they charge the maximum rent if they lease the land. Think about how will explain your answer.

Minimum Acreage?

3.What is the threshold acreage after which the family will no longer lease out land, but hire a supervisor and employ wage labor? (Please provide your answer as an integer)