What are spillover costs?

productions costs paid by the general public
extra distribution costs paid by the manufacturer
distribution costs paid by the middle person
regular rises in price absorbed by the market

Spillover costs are production costs paid by the general public.

In economics a spillover is an economic event in one context that take place because of something else in a seemingly unrelated context. For instance, externalities of economic activity are non-monetary spillover effects upon non-participants. Spillover costs are costs of consumption or trade that spill over onto other parties. Economists call spillover costs externalities.

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