Farmers in Marsabit County draw their irrigation water from an underground aquifer. The aquifer has a natural maximum recharge rate of 340,000 litres per day. The total product schedule for well operations looks like this:

Wells Operating Total Water Output
10 100 200
20 280 340
30 380 400
40 400 380
50 340

(a) Adding a new row to the table above, calculate total revenue for each number of wells. (3 Marks)
(b) If each well is privately owned by a different farmer without any regulations, how many wells will operate? Briefly describe why this number of wells is not economically efficient. Also, is this number of wells likely to be ecologically sustainable in the long term? (3 Marks)
(c) What would be the economically efficient number of wells? Explain why social benefits (profits) are maximized at this level of output. (3 Marks)
(d) Indicate a fee, in dollars per day, that the government could charge to achieve the socially efficient equiLiBrium. Also, is the socially efficient equiLiBrium likely to be ecologically sustainable? (3 Marks)
(e) Suppose a new technology is adopted that reduces the cost of operating a well from 600 to 400 dollars. Now how many wells will operate without any regulation? (3 Marks)
(f) What is the socially efficient number of wells with the new technology? How has the introduction of this new technology affected environmental sustainability? What new fee would you recommend the government to charge to achieve the socially efficient equiLiBrium? (3 Marks)