D.  the total cost of producing a good exceeds the costs borne by the producer.

A. the price of the good exceeds the marginal cost of producing it.
B. the total cost of producing a good exceeds the costs borne by the producer.
C. firms fail to achieve allocative efficiency.
D. firms fail to achieve productive efficiency.

ANSWER:

B. the total cost of producing a good exceeds the costs borne by the producer.