A lack of competition results in deadweight loss.

Name: A lack of competition results in deadweight loss.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When there is a lack of competition, firms are able to set higher prices without fear of losing customers to competitors. This results in a deadweight loss, as consumers are paying more for goods or services without receiving any additional benefits, and firms have less incentive to innovate or produce efficiently.

A Lack of Competition Results in Deadweight Loss