Problems (multiple choice): The following scenario applies to the next two questions. A railroad can operate zero, one, two, or three trains a day along a certain track that borders a farmer's field. The train occasionally emits sparks that damage the crop. The following table shows the railroad's profit and the crop damage: No. of trains Total RR profit Total Crop damage 0 0 0 1 50 30 2 100 60 3 150 120 ___23. The optimal number of trains is (a) Zero. (b) One. (c) Two. (d) Three. ___ 24, If bargaining costs between the railroad and the farmer are low (a) The efficient number of trains will run no matter how liability for crop damage is assigned. (b) If the railroad is held liable for damages, it will run two trains and pay the farmer $60. (c) If the railroad is not liable for damages, the farmer will pay the RR $50 not to run the third train. (d) All of the above. ___25. There are two potential offendersthe first values committing a crime at $100, and the second values committing a crime at $150. The harm from the crime is $125. Assume the probability of apprehension, if a crime is committed, is p=%, and that punishment is by a fine, F. The efficient outcome in this situation is: (a) F= 125 and both offenders commit the crime. (b) F=125 and only offender two commits the crime. (c) F=250 and only offender two commits the crime. (d) F=250 and neither offender commits the crime