When all consumers are charged the same price and that price exceeds marginal cost,the result is a deadweight loss for society.

Question

Quizplus · Accepted Answer

This is because the price charged exceeds the cost of producing one more unit, thus discouraging some consumers from purchasing the product, resulting in a loss of overall welfare or surplus for both consumers and producers. This is known as deadweight loss or inefficiency.

When All Consumers Are Charged the Same Price and That