The two deadweight triangles are: a) the "consumption distortion" and b) the "production distortion" losses. It is easy to understand why the consumption distortion constitutes a loss for society (it raises the prices of goods to consumers). However, it might seem paradoxical that the production distortion is considered an equivalent burden on society. After all, in this case, profits increase, and additional production (with its associated employment) comes on line. Explain why the production distortion is indeed a loss to society, and what is wrong with the logic

that leads to the apparent paradox.