Underproduction of a good _______ create a deadweight loss and overproduction of a good _______ Create a deadweight loss.
A) will not; will not
B) will; will not
C) will; will
D) will not; will

Question

Quizplus · Accepted Answer

Underproduction and overproduction of a good both lead to inefficient allocation of resources, creating a deadweight loss by not maximizing total surplus in the market.

Underproduction of a Good _______ Create a Deadweight Loss and Overproduction