Multiple Choice
Redding Railroad is held liable by the courts for damages to crops growing along its lines caused by sparks flying off when trains pass.The court ordered damage assessment is $100 per adjoining acre though profits per acre are less than this.Currently,about half of the line has adjoining planted farmlands,the other half is not yet developed.As a result
A) farmers are likely to reduce the number of acres they plant.
B) farmers are likely to increase the number of acres they plant in order to collect the payment.
C) the railroad will increase the number of trains running.
D) farmers will accept payments from the railroad equal to lost profits not to plant.
Correct Answer:

Verified
Correct Answer:
Verified
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