A deadweight loss can result from producing less or more than the efficient quantity.

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Deadweight loss is a loss of economic efficiency that occurs when the quantity of goods or services produced is not at its socially optimal level, resulting in a loss to society as a whole. This can occur when the market produces either too much or too little of a good or service. Therefore, producing less or more than the efficient quantity can both result in deadweight loss.

A Deadweight Loss Can Result from Producing Less or More