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1.The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90% of LoJack-equipped stolen carsbut also

1.The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90% of LoJack-equipped stolen carsbut also arrest many auto thieves and shut down many "chop shops" that dismantlestolen vehicles to get at their used parts. Thus, LoJack provides both private benefits and positive externalities. Explain, If the government were to subsidize LoJack purchases, this would (4Marks)

A.have both private and social benefits.

B.have only private benefits.

C.add to the social costs.

D.add more to social cost than to social benefit

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