Goods that have spillover costs affect our collective well-being and therefore can be overproduced because
A)The government has failed to establish rules for contracts.
B)Most businesses are more concerned about profits than how the environment is affected.
C)The government has failed to enforce contract provisions.
D)The government is concerned about broad economic welfare.

Question

Quizplus · Accepted Answer

Goods with spillover costs, such as pollution, can be overproduced because businesses often prioritize their profits over the negative effects on the environment or society. While government regulations and enforcement can help mitigate this issue, the root cause is often businesses' pursuit of profit.

Goods That Have Spillover Costs Affect Our Collective Well-Being and Therefore