Question

Dead-weight loss can never be zero.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

"False"

A deadweight loss can be defined as a situation when the total surplus in the market i.e. consumer surplus and the producer is reduced as a result of market distortion. It can be because of a tax. The statement is false because in a perfect market condition the deadweight loss is zero or we can say the producer and the consumer surplus is the maximum. Here, the firm produces at the marginal cost and price equal that means the marginal cost of producing a good is equal to the marginal benefit the consumer is getting by purchasing it. The deadweight loss becomes zero.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the concepts of dead weight loss do to a tariff.
Explain the concepts of dead weight loss do to a tariff.
if we know that Monopolies create a dead weight loss for society, then why do Monopolies...
if we know that Monopolies create a dead weight loss for society, then why do Monopolies exist?  
In which way do tariffs not introduce dead weight loss into the market? It allows for...
In which way do tariffs not introduce dead weight loss into the market? It allows for less efficient firms to produce They decrease the number of consumers The price of the good goes up Tariff revenues are given to the government
With examples explain the terms; Equivalence between taxes Direct versus indirect taxes Dead weight loss
With examples explain the terms; Equivalence between taxes Direct versus indirect taxes Dead weight loss
Identify using capital letters the areas on your diagram that represents the dead-weight loss associated with...
Identify using capital letters the areas on your diagram that represents the dead-weight loss associated with the subsidy. Provide an explanation for your answer.
Find and graph the Post Tax Consumer Surplus,Producer Surplus,Tax Revenue, Dead Weight Loss, and the economic...
Find and graph the Post Tax Consumer Surplus,Producer Surplus,Tax Revenue, Dead Weight Loss, and the economic incidence of the Tax Demand is P=21-2Q Supply is P=Q Tax is 4$ per unit
Chapter 8 (section 8-1) discusses the dead weight loss from various types of tax plans. How...
Chapter 8 (section 8-1) discusses the dead weight loss from various types of tax plans. How would you change the tax system to promote equality, efficiency, and/or economic growth?
Atkins Weight Loss Program: In a test of weight loss programs, 40 adults used the Atkins...
Atkins Weight Loss Program: In a test of weight loss programs, 40 adults used the Atkins weight loss program. After 12 months, their mean weight loss was found to be 2.1 lb, with a standard deviation of 4.8 lb. Construct a 90% confidence interval estimate of the mean weight loss for all such subjects. Does the Atkins program appear to be effective? Does it appear to be practical? Can this be constructed in XLSTAT? Where would you find the data...
1. If an exchange of nonmonetary assets lacks commercial substance, a loss can never be recorded....
1. If an exchange of nonmonetary assets lacks commercial substance, a loss can never be recorded. True or False 2. The cost of research and development performed for others is expensed as incurred. True or False
what are some of the problems identified that can cause weight loss in the elderly in...
what are some of the problems identified that can cause weight loss in the elderly in long term care facilities ?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT