Jack manufactures whiskey in Lincoln County and earns an after tax profit of V. Lincoln County earns tax revenues from Jack equal to T. Assume that those tax revenues could not be replaced by other firms if Jack were to shut down. Whiskey production causes a fungus to grow on nearby houses. The value of the damage to residents due to lost enjoyment of property is D. The fungus can be cleaned up (thereby eliminating the cost of D) by power washing at a cost of C. Assume C < D. There are no laws restricting whiskey production, so Jack has the right to "pollute" the air. "Society" consists of Jack, affected residents, and the county treasury. Which of the following is true: A) If a court rules that Jack should compensate residents, Jack could reasonably argue for a county subsidy if V < C < (V + T). B) In the case V < D < (V + T), neighbours could pay off Jack to stop producing and this would be efficient. C) The status quo is efficient if and only if V > D. D) The status quo is efficient if and only if V > C