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3. Using diagram \#2, where, Mrancher[definedasMR-MC] is the expected marginal profits to the rancher when the rancher sells an additional head of cattle, and MDfarmeris the expected damages to the corn farmer, when the rancher's one additional head cattle accidently consumes part of the farmer's corn crop, Determine the following: a. Determine the following , if the damages done to the farmer's crop by the ranchers cattle is not recognized (1) equilibrium quantity of cattle raised by =20k heads/yr. [ until on the last head M rancher=0 or until MR=MC] (2). Profits to the rancher = area A+ area B+ area C (3). damages to the farmer's crop = area B+ area C+ area D Sum of MD (value corn consumed by rancher's cattle) (4) income of farmer = minus area B+ area C+ area D Value of corn the farmer cannot sell b. Determine the following if the rancher is liable for the damages done to the farmers crop by the rancher's cattle (1) equilibrium quantity of cattle raised =10k heads /yr. Rancher will raise cattle and pay damages to farmer until M=MD (2). profit to rancher = area A (decreases by area B+ Area C Profit from raising cattle = Area A area B, but pays area B to farmer for damages to his crop (3) damages to the farmer's crop = Area B value of corn consumed by rancher's cattle (4) income of farmer = increases by area B+ area C+ area D c. Determine the following, if the rancher is not liable for the damages done to the farmers crop by the rancher's cattle (1) equilibrium quantity of cattle raised =10k heads /yr. Farmer pays rancher not to raise cattle as long as M