A Plausible Example of Market Failure Due to an Externality

Multiple Choice

A plausible example of market failure due to an externality is

A) the cost of building new highways outside of major cities.
B) the despoiling of rivers and lakes by nitrogen run-off from agricultural fertilizers.
C) the high salaries enjoyed by professional athletes.
D) the line-ups at the theatre when a good movie is playing.
E) a farmer with an apple orchard who also keeps bees.