Question 10 6 pts MNow, imagine the damage from the trampling is actually only $200 per week (the costs to build and maintain the fence stay the same). (a) Now, which is the efficient outcome? The farmer builds and maintai + (b) Suppose the rancher has the property rights, meaning the farmer has no legal claim if his crops are damaged. After any and all negotiations which of the three outcomes occurs according to the Coase Theorem? [ Select ] v (c) Suppose the farmer has the property rights, meaning the farmer has a legal claim if his crops are destroyed and will be able to recoup his damages. After any and all negotiations which of the three outcomes occurs according to the Coase Theorem? [ Select ] w Consider a farmer and a rancher who operate near one another. The farmer grows crops and the rancher's herd wanders and tramples the farmer's crops. When the herd tramples the crops, it causes $400 per week worth of damage to the farmer. The rancher could build a maintain a fence around the herd for $500 per week. The farmer could build and maintain a fence around the crops for $300 per week. Assume there are no transaction costs. Assume no costs other than the costs listed, notice each cost is listed as (per week). There are three outcomes here: 1. The farmer builds and maintains a fence around the crops. 2. The rancher builds and maintains a fence around the herd. 3. No fence is built and the crops are damaged. (a) Which is the efficient outcome? The farmer builds and maintai v (b) Suppose the rancher has the property rights, meaning the farmer has no legar ctaim if his crops are damaged. After any and all negotiations which of the three outcomes occurs according to the Coase Theorem? The rancher builds and maint: w (c) Suppose the farmer has the property rights, meaning the farmer has a legal claim if his crops are destroyed and will be able to recoup his damages. After any and all negotiations which of the three outcomes occurs according to the Coase Theorem? The farmer builds and maintai In the scenario where the farmer has the property rights, in order for the farmer to agree to build and maintain a fence, the rancher must pay the farmer between $ 300 v and %0 (When filling in the