2. (10) Coasean Approach to Externalities Chapter 5 of the book discusses the outcomes of four different legal rules applied to the case of sparks generated by a single railroad's trains causing fires beside its rail line, by considering numerical examples. In my PowerPoints for the case in which all the land beside the rail line is farmed by a single farmer and in which bargaining is prohibitively expensive, I generalized the analysis to treat any combination of costs. Consider the following combination of costs: f=50,s= 25, r= 10 a)(4) What is the efficient outcome, and why? Does application of each of legal rules 1, 2, and 4 yield the efficient outcome, and why? b) (2) Consider one situation in which application of one of the legal rules gives rise to inefficiency. Explain the source of the inefficiency. c) (4) In my PowerPoints, I assumed that there is a single farmer. The book, in contrast, assumes that there are 100 farmers. With 100 farmers, two new issues may arise, which the author refers to as "the public good problem" and "the holdout problem". Give an example of| cach in the context Chapter 5's example