A deadweight loss occurs in a
A. market in which the market clearing price of a good is the same as the marginal cost of producing it.
B. market in which the market clearing price of a good is below the marginal cost of producing it.
C. monopoly.
D. perfectly competitive market.
Answer: C
You might also like to view...
An unexpected decrease in aggregate demand
A) will decrease long-run aggregate supply. B) will decrease the average duration of unemployment. C) will decrease the price level. D) will decrease real GDP, but will not affect the rate and duration of unemployment.
An increase in nonlabor input costs will: a. Increase SRAS
b. Decrease SRAS. c. Decrease LRAS. d. Both b. and c.
The point of intersection between an indifference curve and a demand curve is allocatively efficient
a. True b. False Indicate whether the statement is true or false
In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?
What will be an ideal response?