Difference between revisions of "Deadweight loss"
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(New page: A deadweight loss is an economic loss to the public without any offsetting gain.) |
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A deadweight loss is an economic loss to the public without any offsetting gain. | A deadweight loss is an economic loss to the public without any offsetting gain. | ||
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| + | Specifically, a deadweight loss is the loss in efficiency that a society suffers as a result of firms setting their monopoly prices greater than marginal cost, P > MC. The deadweight loss is due to the loss in value to society of output not produced. | ||
Revision as of 11:45, May 5, 2007
A deadweight loss is an economic loss to the public without any offsetting gain.
Specifically, a deadweight loss is the loss in efficiency that a society suffers as a result of firms setting their monopoly prices greater than marginal cost, P > MC. The deadweight loss is due to the loss in value to society of output not produced.