A developer owns a piece ofbeachfrontproperty that he intends to develop for residential use.The private returns to the developer are as follows:

Return ifdeveloped: $50,000

Return ifundeveloped: $10,000

Suppose that three nearby residents would sustain damages from beach erosion if the land were developed.Their damages would be as follows:

Resident 1: $20,000

Resident 2: $15,000

Resident 3: $10,000

1. Is it efficient for the land to be developed? (Enter "Yes" or "No")
3. Suppose the developer's right to develop hisbeachfrontproperty is protected by aproperty rule.If bargaining costs between the developer and the three residents are zero, will the land be developed? (Enter "Yes" or "No")
5. Continue to suppose the developer's right to develop hisbeachfrontproperty is protected by aproperty rule.However, assume now that it costs the three residents a total of $10,000 to organize and act collectively.Will the land be developed? (Enter "Yes" or "No")
7. Suppose now that the local government has enacted a regulation that prohibits the development of thebeachfrontproperty.What level of compensation should the developer receive ifthe regulation is found to constitute a regulatory taking? Donotconsider the efficiency of the regulation.