Which of the following markets impose deadweight losses on society?
(i)perfect competition
(ii)monopolistic competition
(iii)monopoly
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i) only

Question

Quizplus · Accepted Answer

Monopolistic competition and monopoly both result in deadweight losses due to pricing above marginal cost, leading to reduced output compared to perfect competition, which is allocatively efficient.

Which of the Following Markets Impose Deadweight Losses on Society