Suppose that a railroad runs beside a eld in which commercial crops are grown. The railroad is powered by a steam locomotive that spews hot cinders...

a.    What is the efficient number of trains to run per day? Explain.

b.    If the railroad's right to run its trains is protected by the property rule, how many trains will it run? Explain.

c.    If the farmers' right to have the crops free from fires is protected by the property rule, how many trains will the railroad run? Explain.

d.    If the farmers' right to have the crops free from fires is protected by the liability rule, how many trains will the railroad run? Explain.

Suppose that a railroad runs beside a field in which commercial crops are grown. Therailroad is powered by a steam locomotive that spews hot cinders out of its smokestack.From time to time those cinders land on the crops nearest to the track and burn them tothe ground. Assume there are many farmers whose crops are burned. Their losses dependon the number of trains that run per day. The railroad’s profits and the farmers’ losses areshown in the table: (J Number of trains per day Railroad’s profits Harm caused to crops<J0 $0 $0<J1 $2,000 $1,500<J2 $5,000 $4,000<J3 $9,000 $I6,000<J4 $10,500 $8,000<J5 $10,000 $10,000<J (J The transaction costs are too high for the railroad and the farmers to negotiate. There areno reasonable mechanisms to reduce the fires (no spark arrester at reasonable cost, nochange to other crops, etc.) for a given number of trains.+J