-Costs that spill over to third parties are called
A) opportunity costs.
B) external costs.
C) variable costs.
D) public costs.

Question

-Costs that spill over to third parties are called
A) opportunity costs. 
B) external costs. 
C) variable costs. 
D) public costs.

Quizplus · Accepted Answer

External costs are costs that affect parties who did not choose to incur that cost, often referred to in the context of negative externalities where the actions of an individual or company impose costs on others which are not reflected in the market prices.

-Costs That Spill Over to Third Parties Are Called