How to Calculate Deadweight Loss: Understanding the Welfare Cost of Inefficiency

how to calculate deadweight loss

In economics, deadweight loss is an idea that measures the welfare loss ensuing from an inefficient allocation of assets. It arises when the market equilibrium is distorted on account of imperfections or authorities intervention, resulting in decrease total societal well-being. Understanding learn how to calculate deadweight loss is essential for policymakers, economists, and anybody thinking … Read more