Deadweight loss can be the result of
A) overproduction, but not underproduction.
B) both overproduction and underproduction.
C) neither overproduction nor underproduction.
D) underproduction, but not overproduction.

Question

Quizplus · Accepted Answer

Deadweight loss can occur both from overproduction, where resources are wasted producing goods that are not valued as much as their cost, and underproduction, where beneficial trades do not occur, and society misses out on potential gains from trade.

Deadweight Loss Can Be the Result of