A deadweight loss occurs whenever
A) the total benefit of a good does not equal its total cost.
B) the marginal social benefit of a good does not equal its marginal social cost.
C) there is perfect price discrimination.
D) there is no consumer surplus.

Question

Quizplus · Accepted Answer

Deadweight loss occurs when the marginal social benefit of a good does not equal its marginal social cost, indicating inefficiency in the market.

A Deadweight Loss Occurs Whenever