The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the
A) external cost.
B) external benefit.
C) deadweight loss.
D) big tradeoff.

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss of economic efficiency that occurs when the equilibrium outcome is not achieved, leading to a decrease in total surplus (consumer and producer surplus).

The Decrease in Consumer Surplus and Producer Surplus That Results