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Deadweight Loss
(redirected from Dead-weight loss)

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Deadweight Loss

The costs to society created by an inefficiency in the market.

Notes:

Mainly used in economics, the term "deadweight loss" can be applied to any deficiency due to an inefficient allocation of resources. Lost production due to inaccurate forecasting for labor is an example of a deadweight loss.

See also: Dismal Science, Economics, Equilibrium, Keynesian Economics, Laissez Faire, Macroeconomics, Microeconomics

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