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Question 1: Climate Change, Profits, and Land Values Suppose, in a certain county, there are three wineries growing grapes in a perfectly competitive market. The overall global market supply of grapes is given by Qs=0.5P. The demand function equals Qp=100-1.5P. The marginal cost functions for the farms are given by MC=48+Q, MC-46+Q and MC;=42+Q. Assume there is no fixed cost of production. a) Calculate the overall market equilibrium quantity and the corresponding market clearing price. b) How much corn does each farm produce? c) What is each firm's annual profit? d) Assuming a discount rate of i=5% and a profit growth rate of g=0.5%, what is the land of each firm worth? e) Now assume, due to better climatic conditions, marginal cost for each firm falls by $2 per unit. Calculate the new marginal cost functions, quantities, profits and the new land values assuming the same discount and growth rates as under (d). What was the sum of the three land values before and after the change?