Person 1 and person 2 contract for person 1 to produce a flyrod for person 2. They agree on a price of 900. When they contract, person 2 values the flyrod at 1400. On the day that person 1 finishes the flyrod, person 2 is transferred for work to a location where there are not fish that he will use that type of flyrod for. So, person 2 now values the rod at only 100. Person 1 can immediately sell the flyrod to person 3 for 800.

Part A: What is the efficient outcome on the day the flyrod is completed?

Part B: Suppose the court uses expectation damages. What will be the outcome (transfers, who has the flyrod, etc.)?

Part C: Suppose, instead, that the court uses specific performance (so that person 2 is required to purchase the flyrod). What is the outcome, and is this efficient?