Quiz: Module 10 Assignment * *Homework Help - Q&A from Onl x - V X Asbccd.instructure.com/courses/31959/quizzes/177087/take Q Fall 2021 Home D Question 1 10 pts Announcements 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 Modules farmer. Discussions 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 Grades costs listed, notice each cost is listed as (per week). NetTutor There are three outcomes here SBVC Student 1. The farmer builds and maintains a fence around the crops. Resources 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 rancher builds and maint v (? (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? The farmer builds and mainte (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 rancher builds and maint v 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 $ 500 and $ 300 (When filling in the blanks here put the lower bound, the smaller number, first and put the upper bound, the larger number, second) D Question 2 6 pts Now, 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? [ Select ] (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 ] (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 ] D Question 3 4 pts Type here to search 750F Clear ~ DI ENG 8:12 AM 11/12/2021Quiz: Module 10 Assignment * *Homework Help - Q&A from Onl x - V X Asbccd.instructure.com/courses/31959/quizzes/177087/take Q Fall 2021 D Question 2 6 pts Home Announcements Now, imagine the damage from the trampling is actually only $200 per week (the costs to build and maintain the fence stay the same). Modules (a) Now, which is the efficient outcome? [ Select ] Discussions Grades (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? NetTutor [ Select ] BVC Student Resources (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 ] (? D Question 3 4 pt Define the Coase Theorem, and explain how your answers fit the Coase Theorem's predictions. Hint: If your answers above DO NOT fit in the prediction of the Coase Theorem, then you probably got the answers above incorrect. Edit View Insert Format Tools Table 12pt \\ Paragraph " B I U A v Q V T V V VV BY $ VEVE D BV VXQ 8 0 words > Quiz saved at 8:12am Submit Quiz Type here to search 75OF Clear ~ 01 ENG 8:12 AM 11/12/2021