If equilibrium is achieved in a competitive market where there is no government and tax the deadweight loss will equal the sum of consumer surplus and producer surplus. there is no deadweight loss. the deadweight loss will be the same as the opportunity cost the deadweight loss will be maximized

If equilibrium is achieved in a competitive market where there is no government and tax the deadweight loss will equal the sum of consumer surplus and producer surplus. there is no deadweight loss. the deadweight loss will be the same as the opportunity cost the deadweight loss will be maximized

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 6SQ

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Question

If equilibrium is achieved in a competitive market where there is no government and tax

the deadweight loss will equal the sum of consumer surplus and producer surplus.

there is no deadweight loss.

the deadweight loss will be the same as the opportunity cost

the deadweight loss will be maximized.

Definition Definition Cost to society created by market inefficiency when supply and demand are not in market equilibrium.

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