▁$ 0 . 6 0 ▁per ▁n ail . ▁The ▁mon opol ist ▁has ▁" pr iced ▁them ▁out ▁of ▁the ▁market ", ▁even ▁though ▁their ▁benefit ▁exceed s ▁the ▁true ▁cost ▁per ▁n ail . ▁ ▁Sub s id y ▁Con vers ely , ▁dead weight ▁loss ▁can ▁also ▁arise ▁from ▁consum ers ▁bu ying ▁more ▁of ▁a ▁product ▁than ▁they ▁otherwise ▁would ▁based ▁on ▁their ▁marg inal ▁benefit ▁and ▁the ▁cost ▁of ▁production . ▁For ▁example , ▁if ▁in ▁the ▁same ▁n ail ▁market ▁the ▁government ▁provided ▁a ▁$ 0 . 0 3 ▁subs id y ▁for ▁every ▁n ail ▁produced , ▁the ▁subs id y ▁would ▁reduce ▁the ▁market ▁price ▁of ▁each ▁n ail ▁to ▁$ 0 . 0 7 , ▁even ▁though ▁production ▁actually ▁still ▁costs ▁$ 0 . 1 0 ▁per ▁n ail . ▁Cons um ers ▁with ▁a ▁marg inal ▁benefit ▁of ▁between ▁$ 0 . 0 7 ▁and ▁$ 0 . 1 0 ▁per ▁n ail ▁would ▁then ▁buy ▁n ails , ▁even ▁though ▁their ▁benefit ▁is ▁less ▁than ▁the ▁real ▁production ▁cost ▁of ▁$ 0 . 1 0 . ▁The ▁difference ▁between ▁the ▁cost ▁of ▁production ▁and ▁the ▁purchase ▁price ▁then ▁creates ▁the ▁" de ad weight ▁loss " ▁to ▁society . ▁ ▁Tax ▁A ▁tax ▁has ▁the ▁opposite ▁effect ▁of ▁a ▁subs id y . ▁Where as ▁a ▁subs id y ▁ent ices ▁consum ers ▁to ▁buy ▁a ▁product ▁that ▁would ▁otherwise ▁be ▁too ▁expensive ▁for ▁them ▁in ▁light ▁of ▁their ▁marg inal ▁benefit