There are 6 widget factories clustered into an industrial zone upwind of a city. Each factory emits 1 unit of particulate matter into the air for each widget it produces. These emissions travel to the city and cause harm to two groups of city residents.The first are school children, who receive $2 worth of damages for each unit of pollution. The second group are nursing home residents, who receive$5 worth of damages for each unit of pollution.

True or False: The Diamond model indicates that if the government can place a uniform tax on each factory per unit of emissions, the resulting allocation will not be fully efficient (it will only be "second best") because the damages are heterogeneous. Explain briefly. (1 point)