-The Figure Above Shows the Market for Pants

question 63

Multiple Choice

-The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is

• A) the triangle BCE.
• B) the triangle BCE minus the triangle ABE.
• C) the triangle ACE.
• D) zero.
• E) the triangle ABE.

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Definitions:

Legal Agreement

A binding contract between two or more parties that is enforceable by law.

U.S. Clothing Firm

A U.S. Clothing Firm is a business enterprise located in the United States that specializes in the design, production, and sale of clothing and apparel items.

Direct Ownership

A situation where an individual or entity has full control and claim over an asset or property, without any intermediaries.

Contract Manufacturing

The outsourcing of certain production activities to third-party companies, often to save costs or leverage specialized capabilities.