Multiple Choice

-Refer to Figure 15-6. Why is there a deadweight loss?
A) because the marginal private benefit for each additional unit between Q1 and Q2 exceeds the marginal cost
B) because the marginal private cost for each additional unit between Q1 and Q2 exceeds the marginal private benefit
C) because the marginal social cost for each additional unit between Q1 and Q2 exceeds the marginal social benefit
D) because the marginal social benefit for each additional unit between Q1 and Q2 exceeds the marginal cost
Correct Answer:
Verified
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