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Economics of Copyright. Suppose members of Congress propose a bill that would extend the life of all copyright material, both retroactively to existing works and to future works, by an additional 10 years. Currently the length of copyright protection is life of the author (about 35 years on average) plus 50 years after death. Suppose that for a successful novel it typically generates $50,000 in revenue each year after it's creation. (a) Consider the owner of the copyright for an existing novel, where the author had died just under 50 years ago. If the copyright term was extended, what would be rents earned by this copyright owner? How much should they be willing and able to spend on lobbyists to get this copyright term extension passed into law. (b) Now consider an author working on their "next great" novel about a dystopian future run by economists. Under the current copyright term, what is the present value of the expected revenues if the author publishes the work today (and lives another 35 years). (c) By how much would the proposed extension of copyright terms increase the incentive for the author in (b) to complete their novel? (d) Conclude regarding who would benefit most from copyright extension - owners of copyrights for existing works or authors working on new creative endeavors? Is this consistent with the purpose of copyright law? Explain