During the Production Process Ajax Corporation Releases Pollution into the Air

Multiple Choice

During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation?

A) Ajax is taking advantage of asymmetric information.
B) This is an example of a market failure and is a reason for the government to regulate the industry.
C) The quality of the product could be improved if the amount of pollution can be reduced.
D) This is known as the lemons problem.