Which of the Following Markets Impose Deadweight Losses on Society

question 75

Multiple Choice

Which of the following markets impose deadweight losses on society? (i) Perfect competition
(ii) Monopolistic competition
(iii) Monopoly

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(i) only

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Definitions:

Annuity Stream

A series of fixed payments made at equal intervals over a specified period of time.

IRR Rate

The Discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to assess the profitability of investments.

Time Value Of Money

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.

Initial Cash Outlay

The immediate amount of cash required to initiate a project, investment, or purchase.