Ronald owns a cattle farm at the source of a long river. His cat-tle's waste flows into the river, and down many miles to whereCarla lives. Carla gets her drinking water from the river. By allow-ing his cattle's waste to flow into the river, Ronald imposes a neg-ative externality on Carla. In each of the two following cases, do you think that through negotiation, Ronald and Carla can findan efficient solution? What might this solution look like?
a. There are no telephones, and for Carla to talk to Ronald,she has to travel for two days on a rocky road.
b. Carla and Ronald both have e-mail access, making it cost-less for them to communicate