C. Farmer George lives for two periods. In the first period, he harvests 100 bushels of corn. In the second period he is too old to harvest any corn. However, corn can be stored from one period to next without loss (or gain). The George's utility function is u(C1, C2) = CIC2, where " and c2 are the amount of corn (in bushels) he consumes in periods 1 and 2 respectively. (1) How much corn will George consume in the first period and in the second period? Suppose that the farm is infested with rats which eat 36% of what is stored (that is, if George stores a bushels in the first period, only (64%) x bushels will be left in period 2 for him to consume). (2) How much corn will George consume in the first period and in the second period? (3) What is the maximum amount of corn George is willing to give up in exchange for a cat who will kill all the rats (so that no stored corn will be lost)? Suppose there is no cat (or any other means of disinfestation) available. However, the government decides to help George. (4) How much corn does the government need to subsidize George in period 1 in order to compensate George for his utility / welfare loss due to rat infestation? (5) Relate your answers to (3) and (4) to some measurements of welfare changes (for example, equivalent variation, compensating variation) we have studied