LoJack is an electronic anti-theft device that helps law enforcement track down stolen cars. Research suggests that LoJack helps reduce car thefts, by enabling the police to catch thieves as well as locate and shut down garages that specialize in stripping out parts from stolen cars.

Because the LoJack device is installed hidden from view, potential thieves don't have a way of knowing that a car has the device or not. Thus, LoJack owners indirectly provide a benefit to the community, and this community benefit far exceeds their perceived private benefit from installing LoJack.

Another anti-theft device is "The Club". This is a device that is used to lock the steering wheels of car, to prevent theft. The Club is very visible, and so potential thieves can see that the car is locked using a Club. Because of this, it is argued that car owners who use the Club impose a negative cost on other car owners, as thieves are more likely to try to steal cars that don't have the Club.

Based on this information, which of the following statements are true. There may be more than one correct statement. Choose all statements that are true.

Group of answer choices

The number of LoJack devices sold in a (free) market would be lower than optimal for maximizing total welfare.

The number of LoJack devices sold in a (free) market would be more than optimal for maximizing total welfare.

A small tax or fee imposed on the purchase of Clubs is likely to increase total welfare in the market for Clubs.

A small tax or fee imposed on the purchase of Clubs is likely to decrease total welfare in the market for Clubs.