Question 1: Consider the following three period perfectly competitive extraction model (qo, q1, and q2) Demand is given as Pr = 10 - 0.5qt. where q is the level of demand as well as the amount extracted from the mine and sold. Let r = 0.25. a. Suppose the total starting stock of the resource S, is 80. Using the same procedure I used in class (i.e. that little bit of calculus and algebra I showed you), find the amount extracted and sold every year (t=0, 1, and 2). What do your results imply? What is the user cost of the resource (i.e. lamda)? What does this value imply? b. Suppose now the total starting stock S = 40. Find the amount extracted and sold every year (t=0, 1, and 2). What do your results imply? What is the user cost of the resource (i.e. lamda)? What does this value imply