They all had to wear bow ties
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>.
