Deadweight loss is not the result of:
A) an efficient market.
B) an inefficient market.
C) zero consumer surplus.
D) zero producer surplus.

Question

Quizplus · Accepted Answer

Deadweight loss is the result of an inefficient market, where the quantity of goods supplied and demanded are not at an optimal level. This results in a loss of both consumer and producer surplus. However, in an efficient market, deadweight loss does not occur as the market is operating at an optimal level where societal welfare is maximized. Zero consumer or producer surplus may lead to a reduction in individual welfare, but it does not necessarily result in deadweight loss.

Deadweight Loss Is Not the Result Of