Firm suffering from Lost

Firms can suffer economic losses in the short run. An economic loss is the situation in which a firm's total revenue is less than its total cost, including all implicit costs. As long as price is above average variable cost, a firm suffering a loss will continue to produce in the short run.


Firms can suffer economic losses in the short run. An economic loss is the situation in which a firm's total revenue is less than its total cost, including all implicit costs. As long as price is above average variable cost, a firm suffering a loss will continue to produce in the short run.
How do you calculate firm loss?

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