Final answer:
To calculate the deadweight loss of a $3 tax on Santa hats, one would need to know the demand and supply elasticity for Santa hats as well as the market equilibrium. Without this information, it's not possible to determine the exact deadweight loss that would result from the tax.
Step-by-step explanation:
The concept of deadweight loss refers to the loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable. In the context of the question, it's asking about the deadweight loss associated with a $3 tax on Santa hats. To calculate this, one would typically need to know the elasticity of demand and supply for Santa hats to understand how the quantity demanded and supplied would change as a result of the tax. However, as the information provided does not include details on the demand and supply curves for Santa hats or the market equilibrium, we cannot calculate the exact deadweight loss without additional data.
The provided reference material does not directly relate to the calculation of deadweight loss for a tax on Santa hats but gives an example of how firms might respond to taxes, such as a pollution tax, by reducing their pollutant output up to the point where the marginal cost of abatement equals the tax. This example illustrates decision-making in the presence of taxes, but for a more accurate answer regarding the Santa hat scenario, the specifics of that market would be essential.