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it is the custom for paper mills located alongside the layzee river to discharge waste products into the river. operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. the above situation is an example of: group of answer choices a spillover benefit. the exclusion principle. a spillover cost. an external economy.

Answer :

(OPTION D) The above situation is an example of an external economy. Business-enhancing variables called external economies of scale happen outside of a company but within the same sector.

Because of the operational efficiency and synergies, external economies of scale may also lower a company's variable expenses per unit in addition to lowering production and operating costs. Internal economies of scale quantify a company's production efficiency and are caused by variables under the management sector team's control. The larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.

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