Which of the following is an example of spillover costs?

Social Studies

2 answers:

mars1129 [50]3 years ago

7 0

Answer:

A manufacturer continues to pollute a river because it does not pay the costs for cleaning it.

Explanation:

bonufazy [111]3 years ago

3 0

The option that is an example of spillover costs is A. a manufacturer continues to pollute a river because it does not pay the costs for cleaning it.

<u>'Spillover costs' refers to a consequence that affects a third party that has not taken part in a decision</u>. In other words, 'spillover costs' makes reference to the damage provoked by another person to a third party. This idea is often used to talk about pollution, as it happens in option A). In this case,<u> the consequences of pollution experienced by the third party, who must pay the costs for cleaning pollution, are the spillover costs</u>.

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