Consider a competitive oil market where a producer faces costs of $10 dollars per barrel to extract oil from the ground. Let denote the price of oil in period and let r be the interest rate. a) Suppose a firm extracts a barrel of oil in period , write an expression for the firm's profit per barrel. b) Assume that asset markets are in equilibrium. Write an expression for the oil producer's profit in period + 1 that is function of the price level in period . c) Define, mathematically, the no (riskless) arbitrage condition. Explain the intuition behind it, how does the process of arbitrage ensure that that the no (riskless) arbitrage condition holds in equilibrium?