One Reason Why Deadweight Losses Are So Difficult to Avoid

question 87

Multiple Choice

One reason why deadweight losses are so difficult to avoid is that:

• A)administrative burden and deadweight loss reflect a clear trade-off to policymakers
• B)income taxes are not paid by everyone
• C)consumption taxes must be universally applied to all commodities
• D)taxes affect the decisions that people make

---

Definitions:

LRATC

Long-Run Average Total Cost, referring to the average cost per unit of output when all inputs are considered variable over time.

Economies of Scale

Businesses experience cost savings linked to the size of their operations, with the per-unit cost usually falling as the operation size grows.

Entire Range

The complete spectrum or entirety of something, without leaving parts out.

Exhausted

A state of extreme physical or mental fatigue, or the depletion of resources or materials.