The deadweight loss in an inefficient market is calculated by first identifying the:
A)marginal cost benefit ratio.
B)average cost of production.
C)actual quantity produced and sold.
D)price compared to the ideal price.

Question

Quizplus · Accepted Answer

Deadweight loss is calculated by identifying the actual quantity produced and sold, as it represents the loss of economic efficiency when the equilibrium outcome is not achieved.

The Deadweight Loss in an Inefficient Market Is Calculated by First