Deadweight loss measures the loss in society's welfare that occurs because a monopolist can earn profits without the concern of new firms entering its industry.

Question

Quizplus · Accepted Answer

Deadweight loss measures the loss in society's welfare that occurs when a market is not operating efficiently, typically due to distortions such as monopolies, taxes, or subsidies, rather than the lack of concern about new firms entering the industry.

Deadweight Loss Measures the Loss in Society's Welfare That Occurs