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A cost imposed on someone who is neither the consumer nor the producer is called a “deadweight loss.”

A deadweight loss can be caused by taxes, subsidies, tariffs and other government policies.

It can also occur when there are inefficiencies or market failures that cause negative externalities such as pollution.

What is a Cost?

A cost can be imposed on someone who is neither the consumer nor the producer.

This kind of cost is called “deadweight loss.”

The deadweight loss can come from taxes, subsidies or tariffs and other government policies, but it also comes from inefficiencies and market failures that cause negative externalities such as pollution.

There are four types of costs: explicit (or direct), implicit (or indirect), opportunity, and coercive.

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An example of an explicit cost would be paying for gasoline to get to work.

An example of an implicit cost would be not being able to spend money because you have no cash on hand; this might happen if your car needs repairs so you do not drive it any more.

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