Figure above. MAC1 represents a mis-estimation of abatement costs. True abatement costs are MAC2; however, the regulatory agency believes that the costs are represented at MAC1 and sets policy accordingly. Due to this error, emissions are ________ than the socially efficient level and damages are ___________ than the socially efficient level. (Hint: Module 8 Slide 5) A. lower; lower B. lower; higher C. higher; lower D. higher; higher