deadweight loss meaning
The costs to society created by an inefficiency in the market.
- this deadweight loss is a form of economic inefficiency that must be taken into account when policies are designed and implemented
- These are deadweight losses and decrease a monopolist's profits.
- The deadweight loss can then be interpreted as the minimum lump sum.
- With the status quo income tax, deadweight loss exists.
- Production is also decreased, further decreasing social welfare by creating a deadweight loss.