When does the producer bear losses in the short-run? - Vidyadip

Question

When does the producer bear losses in the short-run?

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Answer

In the short-run, the producer bears losses when Average Cost exceeds Average Revenue. i.e. when $\text{AC} > \mathring{\text{A}}\text{R} \text{ or} \text{ TC} > \text{TR}, $ at the point of equilibrium.

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