Soot is considered the second largest cause of global warming. It is emitted from a variety of sources but most notably from vehicles. Damian owns a logistics company that has a very large eet of diesel trucks. The Australian Government recently introduced legislation that charges companies based on the amount of emissions of their eets that are above 5% soot. TheyI can either opt to meet the 5% target and pay no permit cost (Process D). or purchase permits entitling them to pollute in excess of 5% (but this will also incur a cost to modify their tleet. using Processes A, B, and C]. Process A B Soot. emissions ('56) 1|] 8 Costs to modify Damian's eet with Process [-5 thousand) t] 100 Permit cost ($ thousand] 500 300 a. What is the system called where the government could issue a maximum amount at soot emissions permits that would allow lms to emit soot only if they held a valid permit? . Type CT for Cap and Trade, F for Free market, C for Competitive market. b. [There is a total oi 7 logistics companies exactly like Damian's that make up the entire Australian logistics industry [including Damian's company}. What is the net cost to society for the Australian logistics industry in order to meet the Government's 5% redudion target? Answer in millions of dollars (to one decimal place) 35 million. c. It the cost of permits was 4times that shown in the table, and firms chose to adopt the least cost solution to achieve any emission target. What procas would be adopted by all those in the logistics industry? . Type A, B, C, or D