TERMIUM Plus®

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DEADWEIGHT LOSS [1 record]

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Alphabetical list of terms

Record 1 1998-07-06

English

Subject field(s)
  • Statistical Graphs and Diagrams
  • Saving and Consumption
DEF

Loss of consumer surplus incurred by buyers and not captured by producers, which is consequent upon an initially competitive industry becoming monopolistic and therefore, ceteris paribus, charging a higher price and selling a lower level of output.

OBS

What happens to the little triangle EIG? It is lost to everybody and represents "deadweight loss". Thus consumers lose more than the monopolist's profit; and even if we took back the NEGN' profit by lump sum taxation, we would be losing to the devil of inefficiency the "deadweight triangle" which benefits nobody.

French

Domaine(s)
  • Diagrammes et graphiques (Statistique)
  • Épargne et consommation

Spanish

Campo(s) temático(s)
  • Diagramas y gráficos estadísticos
  • Ahorro y consumo
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