When prices exceed marginal cost,the result is a deadweight loss for society.

Name: When prices exceed marginal cost,the result is a deadweight loss for society.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When prices exceed marginal cost, it means that there is a distortion in the market and resources are being allocated inefficiently. This results in a deadweight loss for society as some mutually beneficial transactions are not taking place, leading to a net loss in economic welfare. Therefore, the statement is true.

When Prices Exceed Marginal Cost,the Result Is a Deadweight Loss