Suppose that Rebecca throws her Coke bottle out the car window and it smashes on the road. Jim drives over the broken glass and gets a flat tire. Rebecca's Coke consumption has resulted in a spillover

Question

Quizplus · Accepted Answer

Rebecca's action of throwing the Coke bottle out of the car window, leading to Jim getting a flat tire, is an example of a spillover cost. This is because it imposes an unintended negative consequence (cost) on Jim, who was not involved in the consumption of the Coke.

Suppose That Rebecca Throws Her Coke Bottle Out the Car