The deadweight loss triangle shows the costs of monopoly in terms of:
A) social fairness.
B) money spent on lobbying the government.
C) non-price competition.
D) misallocated resources.

Question

Quizplus · Accepted Answer

The deadweight loss triangle represents the loss of economic efficiency when the equilibrium outcome is not achieved, typically due to monopolies setting prices above marginal cost, leading to misallocated resources.

The Deadweight Loss Triangle Shows the Costs of Monopoly in Terms