Robert owns a cattle ranch next to a flower farm owned by Felicia. Robert's cattle tend to roam and sometimes they stray onto Felicia's land and damage her crops. Robert can choose the size of his herd and his revenues are 56 for each cow he raises. The table below shows his private marginal cost of production (MCP) and the damage each additional cow creates (marginal cow damage or MCD) are given below. it of Cattle MCP MCD 1 3 51 2 3 2 3 4 3 4 5 4 5 b 5 6 7 6 t of production is 510, and her Farmer Felicia can choose either to farm or not to farm. Her cos cow her revenue is revenue is $12 when there are no cattle roaming loose. For each additional reduced by the amount in the MCD column above. o figure out four things: the profit maximizing whether or not Felicia will farm and what her the net monetary benefits to both To answer the following questions, you need t number of cows for Robert to own, his profits, profits will be. Remember that efficient outcomes maximize parties; in other words, total ranching plus farming profits. pay for any damages caused to Felicia? a) How many cows will Robert choose if he does not b) Will Felicia farm? ) What will be the outcome if Robert is liable for damages? d) What is the efficient outcome (the outcome that maximizes total profits)? ) Suppose that itis possible to build a fence to enclose the ranch for a cost of $9. s building the fence efficient? Explain. f| Suppose the farmer can build a fence around her crops for a cost of $1. Is building this fence efficient? Explain