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Deadweight loss

In economics, a deadweight loss is said to occur when some people could be made better off without others being made worse off (that is, the current situation is not Pareto optimal).

Common causes of deadweight losses are monopoly pricing (or even pricing in markets with high fixed costs), externalities or taxes or subsidies.

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This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Deadweight loss".