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deadweight loss meaning

  "deadweight loss" in a sentence
  • [Finance]
    The costs to society created by an inefficiency in the market.

Examples

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  1. this deadweight loss is a form of economic inefficiency that must be taken into account when policies are designed and implemented
  2. These are deadweight losses and decrease a monopolist's profits.
  3. The deadweight loss can then be interpreted as the minimum lump sum.
  4. With the status quo income tax, deadweight loss exists.
  5. Production is also decreased, further decreasing social welfare by creating a deadweight loss.

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