Tip - How to Calculate Deadweight Loss | eHow

Published  | Submitted by Maggie Armstrong
How to Calculate Deadweight Loss | eHow

Deadweight loss is a measure of economic inefficiency. It arises when the cost of making one more item -- the marginal item -- exceeds the benefit that item provides. This can happen when import quotas restrict supply, raising prices. Taxes and market interventions can also create deadweight loss. To calculate the size of the loss, you must compare...

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