If the government allowed only one airline to serve the entire U.S.market,there would be a _____ loss associated with _____ output in the airline industry.
A)marginal;reduced
B)deadweight;reduced
C)total;increased
D)deadweight;increased

Question

Quizplus · Accepted Answer

Deadweight loss occurs when there is a reduction in economic efficiency, which can happen in monopolies like the scenario described. In this case, allowing only one airline to serve the entire U.S. market would likely lead to reduced output due to lack of competition, hence a deadweight loss associated with reduced output.

If the Government Allowed Only One Airline to Serve the Entire