Use the information in the scenario below to answer questions 1 through 8. Scenario: A mine contains 18 tonnes of copper ore (i.e.,Q= 18). The demand for copper ore is p; = 10 - 0.5g; in each of two periods, 2 = 1, 2. The marginal cost of extraction in each period is constant; MC = 4. The mine owner maximizes profits over the two periods. Question 1 (1 point) What is the minimum amount of ore the mine must contain in order that the mining operation satisfy demand in each of the two periods? (Hint: How much ore must the mine contain in order for the resource to be considered "abundant"?) a) 12 tonnes O b) 4 tonnes O c) 8 tonnes d) 24 tonnes Question 2 (1 point) If present and future consumption are valued equally and the mine contains 18 tonnes of ore, how much copper would be mined in each period? a) 18 tonnes b) 8 tonnes c) 4 tonnes d) 9 tonnes Question 3 (1 point) If the discount rate is 10% and the mine contains 18 tonnes of ore, how much copper would be mined in period 1? a) 9.1 tonnes Ob) 18 tonnes c) 8.9 tonnes d) 9 tonnes Question 4 (1 point) If the discount rate is 10% and the mine contains 18 tonnes of ore, how much copper would be mined in period 2? a) 8.9 tonnes O b) 9 tonnes c) 18 tonnes d) 9.4 tonnes Question 5 (1 point) If the mine contains 18 tonnes of ore, what is the net benefit (i.e., consumer surplus plus producer surplus) in each period when the rate of discount is zero? a) $20.25 Ob) $33.75 c) $13.50 d) $67.50 Question 6 (1 point) If the mine contains 18 tonnes of ore, what is the net benefit (i.e., consumer surplus plus producer surplus) in period 1 when the rate of discount is 10%? a) $20.90 b) $33.53 c) $67.49 d) $33.96 Question 7 (1 point) If the mine contains 18 tonnes of ore, what is the nominal net benefit (i.e., consumer surplus plus producer surplus) in period 2 when the rate of discount is 10%? a) $67.49 b) $33.53 O c) $20.90 d) $33.96 Question 8 (1 point) In question 5, you calculated the net benefit in period 1 (and period 2) when the discount rate is zero. In question 6, you calculated the higher net benefit in period 1 when the discount rate is 10%. In question 7, you calculated the lower nominal net benefit in period 2 when the discount rate is 10%. When the discount rate is 10%, if the people in period 1 shared all of their higher net benefit with people in period 2, what would be the nominal net benefit of the people in period 2? (Hint: Could people in period 1 fully compensate people in the period 2 for consuming more of the resource in period 1 when the discount rate is 10% compared to when the discount rate is zero?) a) $33.76 b) $33.98 Oc) $0.23 d) $0.21