References Mailings Review View Help Assume a cattle producer and a farmer live adjacent to each other and the cattle producer's cattle damage the crops of the farmer. Assume the Marginal Net Benefit function for the rancher when he runs cattle can be expressed as Equation 1: (1) MNBR = 240 - 6C Where marginal net benefit rancher (MNBR) is measured in dollars and C is the number of head the rancher runs. Recall that MNBR = MB - MC. Assume the marginal damage imposed on the farmer (MDF) when the rancher runs cattle can be expressed as Equation 2. (2) MDF = 2C Where marginal damage (MDF) is measured in dollars and C is the number of cattle, Questions: 1. 2. 3. 4. 5. 6. Under a zero-liability rule (rancher is not responsible for damages) how many head of cattle does the rancher run? (Before any negotiations!) Show work. (2 points) Under a full liability rule (the rancher is legally prohibited from imposing any damages on the farmer) how many head of cattle does the rancher run? (Before any negotiations!) Show work. (2 points) Now assume a zero-liability rule but allow the rancher and farmer to negotiate. (1) What is the optimal number of cattle? (2) Who pays the cost of compensation? (3) What is the per head compensation price? (4) What is the total amount of the compensation payment? (5) What is the net gain of negotiation to each (to the farmer and to the rancher? Show all work and graphically identify areas. (10 points) Now assume a full liability rule but allow the rancher and farmer to negotiate. (1) What is the optimal number of cattle? (2) Who pays the cost of compensation? (3) What is the per head compensation price? (4) What is the amount of the compensation payment? (5) What is the net gain of negotiation to each? Show all work and graphically identify areas. (10 points) Assume a strong fence could be built for an annual cost of $2,000 and that the fence will keep the cattle out of the farmer's fields. Would this impact your answer to question 3? Would this impact your answer to question 4? Fully explain your answer. (3 points) Assume a strong fence could be built for an annual cost of $1,000 and that the fence will keep the cattle out of the farmer's fields. Would this impact your answer to question 3? Would this impact your answer to question 4? Fully explain your answer. (3 points) 7. Assume a strong fence could be built for an annual cost of $500 and that the fence will keep the cattle out of the farmer's fields. Would this impact your answer to question 3? Would this impact your answer to question 4? Fully explain your answer. (3 points) Search GK W

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Suppose a fisherman owns a fish farm that has a boat and only one worker (the fisherman himself)Currentlyfish are captured and sold in the every dayEventually the to an additional worker so that he can dedicate all his time to capturing the fish, and the can sell the fish per day With the additional worker, the total of the farm is 200 The marginal returns of the second worker is The fisherman now decides to add one more workerWith the two workers capturing and the one worker , output the fish 300 dayThe marginal returns of the third worker per day

The marginal product of effort, a typical worker in fast-food burger joint, is one-               fourth burgers per hour; that is, MPe  = .25The price of a burger is $2. The figure               graphs Mac’s marginal cost of effort.                                                                                                                                                                                                                                                                                                                                                                                                                                            If Mac increases his effort by one unit per hour, the change in the burger joint’s revenue is $ per hour.  That is, what is VMPe , the value of Mac ‘s marginal product of effort ?  Plot the VMPe  curve in the figure.   Mac efficient effort e^ is the solution to what equation? Illustrate the solution in the figure. Mac efficient…

Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?

Give me both answer with full explanation

If Farmer Jones plants no seeds on his farm, he gets no harvest. If heplants 1 bag of seeds, he gets 3 bushels of wheat. If he plants 2 bags, he gets 5 bushels.If he plants 3 bags, he gets 6 bushels. A bag of seeds costs $100, and seeds are his onlycost. Use these data to graph the farmer’s production function and total-cost curve. Explaintheir shapes.

The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?

I need explain answer question 5