-In the figure above, if the market is unregulated
A) more than the efficient amount of output will be produced.
B) less than the efficient amount of output will be produced.
C) the allocation of resources will be efficient because the efficient amount of output will be produced.
D) the deadweight loss will be zero.

Question

-In the figure above, if the market is unregulated
A) more than the efficient amount of output will be produced. 
B) less than the efficient amount of output will be produced. 
C) the allocation of resources will be efficient because the efficient amount of output will be produced. 
D) the deadweight loss will be zero.

Quizplus · Accepted Answer

The market is unregulated, so there is no government intervention to ensure that the efficient amount of output is produced. As a result, producers will produce more than the efficient amount of output in order to maximize their profits.

-In the Figure Above, If the Market Is Unregulated