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

Question

Quizplus · Accepted Answer

Deadweight loss can occur due to both overproduction and underproduction because both situations lead to an inefficient allocation of resources, resulting in a loss of economic welfare.

Deadweight Loss Can Be the Result of