A rancher's cattle business generates a profit of $1,000 per month. However, the cattle frequently wander onto an adjacent farm, causing $400 per month in crop damage. The damage can be completely prevented by building a fence at a cost of $250 per month. Assume the rancher and farmer can negotiate without cost. If the legal framework changes from making the rancher liable for all damages to granting the rancher the 'right to roam' (i.e., not liable for damages), what is the most likely impact?
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A rancher's cattle business generates a profit of $1,000 per month. However, the cattle frequently wander onto an adjacent farm, causing $400 per month in crop damage. The damage can be completely prevented by building a fence at a cost of $250 per month. Assume the rancher and farmer can negotiate without cost. If the legal framework changes from making the rancher liable for all damages to granting the rancher the 'right to roam' (i.e., not liable for damages), what is the most likely impact?
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