According to economist Ronald Coase, it may be possible to achieve the socially efficient outcome in the case of a negative externality regardless of the initial allocation of property rights. True O FalseA benefit-cost analvsis estimated the optimal level of carbon emissions to be E\". If technological progress in reducing the carbon intensity of production proceeds faster than expected, the optimal level of emissions __________ , everything else remaining the same. 0 will be lower than E\" due to marginal abatement costs of abatement falling faster than predicted Q will be higher than E* due to marginal damages of emissions falling faster than predicted Q will be lower than E* due to marginal damages of emissions rising at a slower rate than predicted Q will not be affected Everything else remaining the same, suppose that some polluting plants are shut down due to a reduction in demand for the industry's product and that the industr'glIr is regulated under a cap-and-trade program. As a consequence, we would expect both the market price of permits and the level of emissions to fall in this industry. A mandate that auto manufacturers increase the fuel efficiency standard of their new model vehicles may not be an effective way to reduce greenhouse gas emissions. In fact, emissions may actually increase following the stricter fuel efficiency standard. O True O FalseWhich of the following prevents the Canadian government from setting socially- efficient standards? C] imperfect information regarding damages from emissions C] imperfect information regarding the cost of eliminating emissions C] special interest groups have the ability to influence government policy C] industry in Canada will just ignore any standards set by government and go about business as usual C] the political agenda in Canada is mostly influenced by environmentalists who always demand stricter-than-optimal standards It is possible to eliminate all residuals from production and consumption if we would just reduce the amount of raw materials taken from the natural environment for use in the economy