We might say that when the market clears at the inefficient price and qty... not taking into account the negative externality there is a deadweight "gain" to the economy... seen as the triangle between the demand curve and the MPC beyond the optimal social qty... the extra production is deadweight weighing on the resource allocation of the economy.
thank you so much!!
bqlax9 9 months ago
We might say that when the market clears at the inefficient price and qty... not taking into account the negative externality there is a deadweight "gain" to the economy... seen as the triangle between the demand curve and the MPC beyond the optimal social qty... the extra production is deadweight weighing on the resource allocation of the economy.
polvotierno 9 months ago
This was great! I am not sure why there are few views. Thanks for your help!
shbray22 9 months ago
i hope you know i love you right now
XDDuckie 10 months ago