Suppose that under the terms of an international agreement US CO2 emissions are to be reduced by 200 million tons and those of Brazil by 50 million tons. The table indicates the policy options that the United States and Brazil have to reduce their emissions (the mix of reduction policy options is unique for each country based on their economic specialization and natural resource endowments): Policy options Total Emissions Total Cost of Cost per ton of CO2 Reduction Reduction Reduction (million tons carbon) (5 billion) ($ / ton of CO2) United States: A: efficient machinery 60 12 B: reforestation 40 20 C: replace coal-fueled 120 30 power plants Brazil: A: efficient machinery 50 20 B: protection of Amazon 30 3 forest C: replace coal-fueled 40 8 power plants Use information from 13.1.a., and assume a market of transferable permits allows USA and Brazil to trade permits to emit CO2. Brazil would be willing to but permits at any price below the price that the United States is willing to get per ton of CO2 emissions reduction. Therefore, a mutually beneficial trade will take place. Is it true or false? O True O False