An efficiency loss (or deadweight loss)declines in size when a unit of output is produced for which
A)marginal cost exceeds marginal benefit.
B)maximum willingness to pay exceeds minimum acceptable price.
C)consumer surplus exceeds producer surplus.
D)producer surplus exceeds consumer surplus.

Question

Quizplus · Accepted Answer

When the maximum willingness to pay exceeds the minimum acceptable price, it indicates that the value consumers place on a unit of output is greater than the cost of producing it, leading to an efficient allocation of resources and a reduction in deadweight loss.

An Efficiency Loss (Or Deadweight Loss)declines in Size When a Unit