2. Suppose four neighboring farmers want irrigation systems for their farms. Each farmer can install a system for \$15,000 and is willing to do so. If two farmers go together, they can build a joint system for \$25,000, and three farmers can build one system for three farms at a cost of \$30,000. If a single system provides for all four farms, its cost is \$44,000.
a. What is the most efficient arrangement for irrigating all four farms?
b. Does the technology of irrigation possess economies of scale at 2 farms? At 3 farms? At 4 farms? Explain.