Old MacDonald has a farm MacDonals can employ any number of workers from the village (0, 1, 2, 3, 4, 5, or 6) and pay each worker $25 per hour regardless how many workers are employed. There are six potential workers on the village, and recently they have discovered a miracle of bitcoin mining. If there is just one bitcoin miner, he earns $300 per hour. However, if there are two bitcoin miners in the village, each earns $200 per hours, with three going mining, each makes $200 per hour, with four-it becomes $150 per hour Five bitcoin miners earn $100 per hour each, and if the entire labor pool goes mining (MacDonald is too old for ming so he sticks to farming), each of six workers makes $50 per hour 1. In free market economy, where workers decide for themselves what's best, what will be the equilibrium allocation of labor? Is it socially efficient? 2. What is socially efficient allocation of workers between bitcoin mining and MacDonald farming? 3. Bitcoin mining council has decided to impose membership fee that each bircoin miner would have to pay into the village budget Village budget will distribute the procdeeds equally among all villagers (either in providing free goods and services or monetary disbursements) How big the fee should be in order to achive socially optimal outcome?