-In the above figure, the deadweight loss is zero if output is
A) 0 units.
B) 10 units.
C) 20 units.
D) 30 units.

Name: -In the above figure, the deadweight loss is zero if output is A) 0 units. B) 10 units. C) 20 units. D) 30 units.
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Question

-In the above figure, the deadweight loss is zero if output is
A) 0 units. 
B) 10 units. 
C) 20 units. 
D) 30 units.

Quizplus · Accepted Answer

Deadweight loss is zero when the market is in equilibrium, which occurs at the socially optimal output level. In this context, it is likely that 20 units represent the equilibrium output where supply equals demand, eliminating deadweight loss.

-In the Above Figure, the Deadweight Loss Is Zero If