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Exhibit 7-13 -Refer to Exhibit 7-13. the Deadweight Loss Occurs Because the Occurs

Question 120

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Exhibit 7-13 Exhibit 7-13 -Refer to Exhibit 7-13. The deadweight loss occurs because the program: A) produces the efficient level of output at Q<sub>1</sub>. B) decreases the output to less than the efficient level of output. C) increases the output beyond the efficient level of output. D) the cost to government is less than the gains in producer and consumer surpluses.
-Refer to Exhibit 7-13. The deadweight loss occurs because the program:

A) produces the efficient level of output at Q₁.
B) decreases the output to less than the efficient level of output.
C) increases the output beyond the efficient level of output.
D) the cost to government is less than the gains in producer and consumer surpluses.

Correct Answer: