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A negative externality or spillover cost occurs when Group of answer choices firms fail to achieve productive efficiency. firms fail to achieve allocative efficiency. the total cost of producing a good exceeds the costs borne by the producer. the price of a good exceeds the marginal cost of producing it.

Sagot :

Answer:

The total cost of producing a good exceeds the costs borne by the producer.

Explanation:

The negative externality refers to the cost bear by the third person which has no connection. For example, pollution made by the factory will equally harm the society and to clean the pollution society will bear the cost rather than factory owner. Thus, cost of producing will be more than the cost that is born by the producer.

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