7. (2 points) A local plant emits pollutants that cause $2000 worth of soil damages to a nearby farming town. The citize

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7 2 Points A Local Plant Emits Pollutants That Cause 2000 Worth Of Soil Damages To A Nearby Farming Town The Citize 1 (23.25 KiB) Viewed 41 times

7. (2 points) A local plant emits pollutants that cause $2000 worth of soil damages to a nearby farming town. The citizens can sanitize the soil at a cost of $500, while the plant can cleanse the soil for $300. For the Coase solution, which of the following statements is/are true? If bargaining does occur, assume that both parties have equal bargaining power. I It is efficient to cleanse/sanitize the soil. II If property rights (i.e., pollution rights) are assigned to the citizens, then the citizens pay the firm $400 to cleanse the soil. A. Only I B. Only II C. I and II D. Neither I nor II