b. Does the stock constraint bind in this case? Show your work below.c. What is the optimal extraction decision for this firm? Show your work below and indicate the optimal choice of q1 and q2 on the graph above.

(30 points) A two-period extraction example: You're working as an economist at a mining firm. This firm has just obtained a 2-year lease on a cobalt mine which has a fixed stock of 9,000 metric tons (MT) of cobalt available. It is yourjob to determine the optimal extraction path over the length of the lease for this firm. In other words, you need to determine how much the firm should extract in year one (ql) and in year two (q;). The firm receives a fixed price for its cobalt of $3,000/MT and faces marginal costs of extraction MC 2 4-00 + 0. Sq. The discount rate is 10% (r = 0.1). Use the two-way graph below to answer the following questions (you may red raw this graph if you need to). MNB1 PVMNBz I X = 9,000 a. Derive the year 1 marginal net benefits function (MNBl) and the year 2 present value marginal net benefits function (PVMNBZ). Plot these functions on the two-way graph above. Be sure to label the axis intercepts and show your work below