On my work the answer was D ..
Water pollution from pulp and paper mills harms plants, animals, and humans is an example of<span> a market failure caused by an externality.
</span>The term externalities denotes consequences of an economic activity. <span> When a product or service's price </span>equilibrium<span> does not accurately reflect the true costs and benefits of that product or service this </span>leads to <span>market failure.In this case the externalities are excess production.</span>
Answer:
It is the third bubble, sorry I answered this super late :(
