Which of the following leads to a deadweight loss?
i.overproduction
ii.underproduction
iii.taxes
iv.monopoly
A) ii only
B) iii and iv
C) i and ii
D) i, ii, iii, and iv
E) i, ii, and iii

Question

Quizplus · Accepted Answer

All the options listed (overproduction, underproduction, taxes, and monopoly) can lead to a deadweight loss because they prevent the market from reaching efficient equilibrium where supply equals demand.

Which of the Following Leads to a Deadweight Loss