The Market Failure of External Cost Is Most Likely to Result

Multiple Choice

The market failure of external cost is most likely to result if Peanuts 'R' Us:

A) keeps secret a discovery that excessive consumption of peanut butter causes nearsightedness.
B) discards broken peanut shells onto an adjacent recreational area in its production of peanut butter.
C) is subject to performance standard regulations by the PBRC (Peanut Butter Regulatory Commission) .
D) develops a new peanut butter processing machine that enhances competition.