Which of the following created by a plant is not an example of a spillover cost?

(a) pollution of a local river

(b) plant accidents affecting the local community

(d) congestion of local roads around the plant

Solutions

Expert Solution

When happening of an event or an activity affects negatively the third party ( I e., The party which were not the part of that activity) is known as spillover effect.

Pollution of local river due to the plant is spillover cost.

Plant affecting the local community is spillover cost.

Congestion of local roads around the plant is spillover cost.

Mosquito and insects control on the plant grounds is not a spillover cost.

Answer: Option (c).

Rahul Sunny answered 1 year ago

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