0
because it went to the bathroom and pooped all the deadweight
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Is the loss caused by a monopoly similar to the deadweight loss from taxation?
yes!
Give an example of deadweight loss?
Deadweight loss (DWL) can be caused by taxation.
Does price gouging create a deadweight loss?
Yes, price gouging creates a deadweight loss.
How the deadweight loss influence the consumer surplus and producer surplus?
Deadweight loss reduces the amount of consumer and producer surplus.
When is the deadweight loss the greatest?
when both demand and supply are elastic
Is the loss caused by a monopoly similar to the deadweight loss from taxation?
yes!
Give an example of deadweight loss?
Deadweight loss (DWL) can be caused by taxation.
Does price gouging create a deadweight loss?
Yes, price gouging creates a deadweight loss.
How the deadweight loss influence the consumer surplus and producer surplus?
Deadweight loss reduces the amount of consumer and producer surplus.
When is the deadweight loss the greatest?
when both demand and supply are elastic
The size of a tax and the deadweight loss that results from the tax are?
Positively related
Does the government intervention in the market can cause the deadweight loss?
Yes, there is a significant amount of a dead weight loss, this is simply because the government has an opportunity cost. Intervention by the government must be very strategic or else.
What are the determinants of the dead weight loss in economics?
The determinants of the deadweight loss in economics are the price elasticities of supply and demand.
What tools help us evaluate how taxes affect economic well-being?
deadweight loss
What is the fundamental cause of monopoly?
The fundamental cause of monopoly is barriers to entry.
What is deadweight loss of taxation?
its a loss of economic well being brought by taxation where a state imposes tax and taxed goods and services are less attractive to consumers
Why a monopoly can lead to inefficient outcomes?
There are various reasons why monopoly leads to an inefficient outcome. Some of the reasons are as follows: * It produces less output that what a competitive market would and charge higher price which ultimately leads to a decline in consumer surplus and a deadweight loss. * Monopoly charges a price above its marginal cost, i.e. P > MC, and this results in an allocative inefficiency * A monopoly doesn't produces at the lowest point of the average cost curve (AC) and hence it leads to production inefficiency. * Monopoly has less incentive to cut cost as it doesn't face competition. This is often termed as X-inefficiency. * A monopoly makes supernormal profit (economic profit), i.e. Q * (AR - AC), leading to an unequal distribution of income. * Monopoly produces less than perfect competition and hence creates unemployment of resources. * By producing less in order to charge higher price, monopoly creates an artificial scarcity. The inefficiency associated with a creation of artificial scarcity is called the Deadweight Loss. (Written by Manish Regmi )
