Sarah is a farmer whose crops are negatively affected by the use of pesticides by her neighbouring farmer, John. The local environment and Sarah's income would significantly improve if John were to reduce pesticide usage by 50%. The payoff to both parties with full and reduced pesticide usage is shown in the table below: John uses full John reduces by 50% John $150 $80 Sarah $60 $140 (i) What is the socially efficient outcome? Explain how this outcome can be achieved if there is no negotiation cost between John and Sarah. (ii) Explain why it does not matter who has the property right to pesticide use to achieve the socially efficient outcome. Under what circumstances will the ownership of property rights affect the socially efficient outcome