Answer-Deadweight loss from a tax is:

Explanation Deadweight loss is the loss in consumer and producer surplus that results from a tax reducing the quantity traded below the efficient level.

Question

Deadweight loss from a tax is:

A The tax revenue collected by the government

B The loss of total surplus that is not transferred to anyone

C The cost to the producer of collecting the tax

D Zero in all perfectly competitive markets

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Deadweight loss from a tax is:

Solution