The marginal social cost of producing the last unit of a good is $1.10,while the consumers' willingness to pay for the last unit is $0.80.The deadweight loss from the production of the last unit of the good is ________.
A) $1.10
B) $1.90
C) $0.50
D) $0.30

Question

Quizplus · Accepted Answer

The deadweight loss is calculated as the difference between the marginal social cost and the consumers' willingness to pay for the last unit, which is $1.10 - $0.80 = $0.30.

The Marginal Social Cost of Producing the Last Unit of a Good