Difference between revisions of "Deadweight loss"
Jump to navigation
Jump to search
(undeadend) |
|||
| Line 1: | Line 1: | ||
| − | 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. |
| − | 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. | + | 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. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 16:36, August 26, 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.