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Use the following information for questions 6-9. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad
Use the following information for questions 6-9. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running. Trains 1 2 3 Total Railroad Profit $100 $200 $300 Total Lost Profit for Farmer $40 $130 $250 If the court were instead to protect the Farmer's crops with a liability rule, what are joint Railroad-Farmer surplus? A. $140 B. $50 C. $60
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