In economics, market efficiency refers to a degree to which market prices reflect all available and relevant information.
A market is efficient if the maximum amount of goods and services are being produced with a given level of resources, and if no additional output is possible without increasing the number of inputs. The quantity produced in the market maximizes the sum of consumer and produced surplus.
The market also allocates buyers to the sellers who can produce the good at least cost. It allocates outputs to the buyers who value it the most.
