Deadweight loss is the dollar measure of the loss that society suffers when units of a good whose marginal social benefits exceed the marginal social cost of providing them are not produced because of the profit-maximizing motives of the firm involved.

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Deadweight loss is the loss in economic surplus due to reasons such as taxes or subsidies, monopolies, externalities, or market inefficiencies. In the given statement, it is correctly described as the loss that society suffers when a good that has a higher marginal social benefit than the marginal social cost is not produced by a firm due to profit motives.

Deadweight Loss Is the Dollar Measure of the Loss That