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Show, with the help of a graph, that any time there exists a deviation of the output from an optimal perfectly competitive-market-outcome, there will be
Show, with the help of a graph, that any time there exists a deviation of the output from an optimal perfectly competitive-market-outcome, there will be a deadweight loss and Imposition of a tax on either consumers or producers will generate deadweight loss even if government benevolently spends the tax revenues on projects.What may then be the justification for that?
Please answer it by using Microeconomics concepts and mention the justification for it. Thanks.
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