Deadweight loss is
A)borne entirely by consumers.
B)gained by producers.
C)the social loss from inefficiency.
D)not a problem with overproduction.
E)eliminated by a monopoly.

Question

Quizplus · Accepted Answer

Deadweight loss refers to the social loss that occurs when resources are not allocated efficiently in a market. This loss is not borne entirely by consumers or gained by producers, but it affects both. It is a problem with overproduction or underproduction, and it is not eliminated by a monopoly as they restrict output and cause deadweight loss themselves. Therefore, the best choice is C.

Deadweight Loss Is