Answer to Question #69391 in Microeconomics for Doria Kao

Question

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?

Answer 1

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