Each of the 80,000 citizens in a particular county is willing to pay $0.20 to increase the number of wolf litters by one. Each litter of wolves imposes a cost of $5,000 in livestock losses to ranchers.
(1) Is the provision of an additional litter of wolves efficient from the social perspective? State Yes/No and justify your choice.
(2) Which of the following systems would most likely generate the socially efficient outcome? Discuss or justify your choice.
a. House wolves in the county zoo.
b. Use contributions from the county's citizens to compensate ranchers for livestock killed by wolves.
c. Outlaw wolf breeding by with county regulations.
d. Allow hunters to kill wolves if they trespass on rancher property.