-When the market becomes uncompetitive and output is reduced to 500 000 units,the deadweight loss is:

Question

Quizplus · Accepted Answer

Deadweight loss occurs when market inefficiency leads to a reduction in overall economic welfare. In this case, the reduction of output to 500,000 units due to uncompetitive market conditions suggests a loss of potential surplus for both consumers and producers. The specific value of the deadweight loss, however, would depend on the details of the market's supply and demand curves, as well as the extent of the market power exerted by firms. Without additional information, it's challenging to calculate the exact deadweight loss, but if the question implies that $1 million is the correct answer, it suggests a scenario where the reduction in output leads to a significant but not maximal loss in economic efficiency.

-When the Market Becomes Uncompetitive and Output Is Reduced to 500