As an example, the $7 in the prior table is because Coase has one field worth $15 million and experiences two tracks on the field for a total of $8 million in environmental damage. It is prohibitively expensive for Taggard Railroad and Coase Farm to enter into a long-term contract regarding either party's use of its land. Required A. B. C. D. Suppose Taggard Railroad cannot be held liable for the damages its tracks inflict on Coase Farm. Show that Taggart Railroad will build two tracks and Coase Farm will plant soybeans on one field. Suppose Taggard Railroad can be held fully liable for the damages that its tracks inflict on Coase Farm. Show that Taggart Railroad will build one track and Coase Farm will plant soybeans on two fields. Now suppose Taggart Railroad and Coase Farm merge. Show that the merged firm will build one track and plant soybeans on one field. What are the implications of the merger for the organizational architecture of the newly merged firm in terms of decision rights, performance measurement, and employee compensation? In your discussion, pay particular attention to internal control and accounting.