-Refer to Figure 15-4

Multiple Choice

-Refer to Figure 15-4. Why is there a deadweight loss?

A) because the marginal social cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
B) because the marginal private cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
C) because the marginal social benefit of producing each additional unit in excess of Q₂ exceeds the private cost
D) because the marginal private benefit of producing each additional unit in excess of Q₂ exceeds the social cost