Answer: (C) Supply side market failure
Explanation:
The supply side market failure is one of the concept which is basically occur when the producers are not paying the full payment for the production of the goods and the services and also due to the damaged caused by them.
The supply side market failure is one of the type of economical based situation in which the products and the services are distributed in the market not properly.
According to the given question, the Transcontinental railway company does not paying for the damages then the supply side market failure has occurred.
Therefore, Option (C) is correct answer.
