If equilibrium is achieved in a competitive market
A)there is no deadweight loss.
B)the deadweight loss will be maximized.
C)the deadweight loss will equal the sum of consumer surplus and producer surplus.
D)the deadweight loss will be the same as the opportunity cost of the last unit of output sold.

Question

Quizplus · Accepted Answer

Equilibrium in a competitive market implies that the market is operating efficiently, and all gains from trade are being realized. Therefore, there is no deadweight loss, which is the loss of economic efficiency that occurs when the equilibrium outcome is not achieved.

If Equilibrium Is Achieved in a Competitive Market