The correct option is
C waste
In order to fill in the blank with the most suitable form of the infinitive, we need to understand the meaning and usage of 'had better'. 'Had better' is used when a situation, person or a thing is better than the other (to do/to have). If 'had better' is used in a passive (voice) sentence, we use the word 'to' along with the verb. In an active sentence, we do not use 'to' with the verb. The verbs without the marker 'to', are called bare infinitives.As the given sentence is in the active voice, we will use the bare infinitive here.
Option A - 'Wasted' is the past form of the verb 'waste'. As we need the bare infinitive (original form of the verb), we can't use 'wasted' here. Hence, option A is incorrect.
Option B -'Have wasted' is used to represent present perfect tense of an action or a sentence. As we need the verb in its original form, we can't use 'have wasted' here. Hence, option B is incorrect.
Option D - 'To waste' can't be used here as the verb in its original form with the marker 'to'. As the sentence is in the active voice, we can't use the infinitive with 'to' here. Hence, option D is incorrect.
Option C - 'Waste' is a verb in its original form and is a bare infinitive. Hence, option C is the correct answer.
'I had better not waste my time on reading comics.'