Question #69391
If an increase in total (consumer+producer) surpluses exceeds the deadweight loss, is that an increase in efficiency? Or does any deadweight loss guarantee market failure?
Expert's answer
Answer:
Deadweight loss is a cost to society created by market inefficiency, so any deadweight loss guarantee market failure
Source: https://www.investopedia.com/terms/d/deadweightloss.asp
Deadweight loss is a cost to society created by market inefficiency, so any deadweight loss guarantee market failure
Source: https://www.investopedia.com/terms/d/deadweightloss.asp
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