Use the figure below to answer the following questions.

Figure 13.3.3
-Consider the market demand curve in Figure 13.3.3. If the market is perfectly competitive, which area indicates the deadweight loss?
A)ABD
B)BCD
C)KDI
D)ADC
E)None of the above

Question

Use the figure below to answer the following questions.
  
Figure 13.3.3
-Consider the market demand curve in Figure 13.3.3. If the market is perfectly competitive, which area indicates the deadweight loss?
A)ABD 
B)BCD 
C)KDI 
D)ADC 
E)None of the above

Quizplus · Accepted Answer

In a perfectly competitive market, there is no deadweight loss because the market operates at an efficient level where supply equals demand.

Use the Figure Below to Answer the Following Questions