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Coase Farm grows soybeans near property owned by Taggart Railroad. Taggart can build zero, one, or two railroad tracks adjacent to Coase Farm, yielding a net present value of $0, $9 million, or $12 million. _________________________________________________Value of Taggart Railroad (in millions)As a function of the Number of Train $0912 Coase Farm can grow soybeans on zero, one or two fields, yielding a net present value of $0, $15 million, or $18 million before any environmental damages inflicted by Taggart trains. Environmental damages inflicted by Taggart’s trains are $4 million per track. Coase Farm’s payoffs as a function of the number of fields it uses to grow soybeans and the number of tracks that Taggart builds are shown below._________________________________________________Value of Coase Farm (in millions)as a Function of the Numberof Fields Planted and the Number of Train TracksTwo fields$18.It is prohibitively expensive for Taggart Railroad and Coase Farm to enter into a long-tern contract regarding either party’s use of its land.a.

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