The deadweight loss associated with output less than the competitive level can be determined by
A) subtracting the competitive level producer surplus from the producer surplus associated with less output.
B) subtracting the consumer surplus from the producer surplus associated with less output.
C) summing the consumer and producer surplus associated with less output.
D) summing the change in the total consumer and producer surplus from moving from the competitive level of output to less output.
Question 2
Giving presents at Christmas does NOT generate a deadweight loss if
A) all gift are money.
B) everybody gets exactly what they want.
C) nobody can be made better off by returning the gift and purchasing a different one.
D) All of the above.