If Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, the $1,500 difference in values is

Question

Quizplus · Accepted Answer

The $1,500 difference represents a deadweight loss because it is the lost economic efficiency when the alligator hunting permit is not allocated to the individual who values it the most (Oliver). This means the total potential economic benefit is not maximized.

If Florida Issues an Alligator Hunting Permit to Jackson, Who