Deadweight loss is the loss of benefit to consumers in a monopoly that no one else in society can obtain. This occurs when the monopolist restricts output and raises prices, resulting in a reduction of consumer surplus and a net loss of social welfare.

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Deadweight Loss Is

Question 361

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Deadweight loss is

A) the amount of taxes that consumers and monopolists pay.
B) the loss of output when a perfectly competitive firm becomes a monopolist.
C) a loss of benefit to consumers in a monopoly that no one else in society can obtain.
D) the price that consumers pay for a product in excess of the average cost of producing it.

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