A deadweight loss of consumer and/or producer surplus occurs when:
a. producers fail to maximize profits.
b. mutually beneficial transactions cannot be completed.
c. consumers do not maximize their utility.
d. the price of inputs increases.
b
Economics
You might also like to view...
When an economy grows out of a recession, normally the demand for bonds ________ and the supply of bonds ________, everything else held constant
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases
Economics
One factor hastening the demise of the Soviet Union was _____
a. its military alliance with Cuba b. its attempt to keep up with the United States in an arms race c. its inability to predict the optimal amount of defense spending d. its strong economic output
Economics