A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.
- Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
- An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
- Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.
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The best answer would be B. the evidence is in plain view
If a store runs a sale on a product to clear out its stock, we can conclude that there was a surplus of the product in the<u> </u>store.
When a product's supply and demand diverge, or when a small number of buyers are willing to pay more than the vast majority of buyers, there is a surplus. In theory, there should be neither a surplus nor a deficit of a good when it is sold for a fixed price that everyone is willing to pay.
Product surplus is the region that is above the supply level and below the equilibrium price.
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Domestic business refers to the business where economic transactions are conducted within the geographical boundaries of the one country. International business refers to the business where economic transactions are conducted across border with several countries in the world.
