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Figure 17.6
-(Figure 17.6) Under perfect competition, the deadweight loss is given by area:

Question

Use the following to answer question:
Figure 17.6 
-(Figure 17.6) Under perfect competition, the deadweight loss is given by area:

Quizplus · Accepted Answer

Under perfect competition, the deadweight loss is given by the area of the triangle formed by the difference between the supply and demand curves up to the quantity traded at equilibrium. In Figure 17.6, this area is equal to C + E. Therefore, the correct answer is choice B.

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