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Suppose a piece of land has a general production function of f(N) = aNV - N', where N is the number of workers. Suppose output

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Suppose a piece of land has a general production function of f(N) = aNV - N', where N is the number of workers. Suppose output receives a price of p in a perfectly competitive market. For simplicity, suppose that the supply of workers is perfectly elastic and the per-worker wage is equal to zero. 1.A. [1 point] What is the optimal number of workers N' and the rent to the land? 1.B. [0.5 points] Suppose that output must be transported to the port for export cost c per unit of distance. Consider a plot of land that is a distance a away from port. What are the rents to the land? 1.C. [0.5 points] Beyond what distance a would we no longer expect to see land dedicated to production? 1.D. [1 point] Now suppose that there are two competing uses for land: milk and almonds. Assume that milk follows the production schedule fi(N) = N - N and almonds follow the production schedule P(N) = N - N2. Denote p; and c; as the per unit output price and the transportation cost for good i, respectively. Over what distance will land be devoted to milk and almonds? 1.E. [0.5 points] Using the parameter values in table below, calculate the distance the separates land into milk and almond production

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