A steel company 5 discharges waste water into a river killing sh. 5 earns 100,000 dollars per day in prot and the river shery F loses 20,000 dollars per day if 5 does not use a waste water treatment plant. F earns 30,000 dollars per day in prot if S buiids and uses a waste water treatment plant.. The treatment plant would cost 5 50,000 dollars per day. F can eliminate the losses, caused by the pollution of 5, by using a sh farm. This would cost F 10,000 dollars per day. (5 marks) (a) If liability by compensation is imposed on S for F, how will bargaining proceed if there are no transacon costs? How is surpius allocated between S and F? What is the maximum levei of transaction costs payable by S and F that can apply without preventing bargaining? (5 marks) (b) What happens in (a) if transaction costs become too high to make bargaining possible? Fully explain your answer. {5 marks) (c) If an injunction is imposed on S by F, how will bargaining proceed if there are no transaction costs? How is surplus allocated between S and F? What is the maximum level of transaction costs payable by S and F that can apply without preventing bargaining? (5 marks) (d) What happens in (c) if transaction costs become too high to make bargaining possible? Fully explain your