Question

Question 1
Under which condition would the firm be incurring a loss?

Answer 1

Answer:

it is not a lost a condition which changes by air

Answer 2

$\huge\bold\pink{Answer}$

• Losses occur when revenues do not cover total costs. If revenues are greater than variable costs, but not total costs, the firm is better off producing in the short run rather than shutting down, even though it is incurring a loss