The choices are:
A. Too much output from a social viewpoint.
B. Inefficiently from a private viewpoint.
C. Unprofitably from a private viewpoint.
D. At a price that is too high from a social view.
I think the answer is, A. Too much output from a social viewpoint. To be exempted from contribution means the manufacturer has made an innovation and management of waste that is recommendable for other industries. From the standpoint of those who have observed it has exceeded expectation. It could have made a 0 waste which is also profitable for both the community and the industry as well.