________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.
A)Marginal cost
B)Producer atrophy
C)Deadweight loss
D)Economic shortage

Question

Quizplus · Accepted Answer

Deadweight loss occurs when there is an inefficient allocation of resources, resulting in a reduction of economic surplus. This can happen when a market is not in competitive equilibrium, usually due to external factors such as taxes or price ceilings. Marginal cost refers to the additional cost of producing one more unit of a good or service. Producer atrophy is not a commonly used economic term. Economic shortage refers to a situation where there is less quantity of a good or service than the demand for it.

________ Refers to the Reduction in Economic Surplus Resulting from Not