Refer to the accompanying figure.Which area represents the deadweight loss associated with producing at the market equilibrium instead of the social optimum?

Question

Quizplus · Accepted Answer

The area represented by B indicates deadweight loss associated with producing at the market equilibrium instead of the social optimum. This is because the socially optimal quantity is at Qopt, while the market equilibrium is at Qe. The difference between these two quantities leads to a deadweight loss, which is represented by area B.

Refer to the Accompanying Figure