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The owner of a perfectly competitive firm that is earning economic losses in the short run

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The owner of a perfectly competitive firm that is earning economic losses in the short run

The owner of a perfectly competitive firm that is earning economic losses in the short run

• is actually losing more than he thinks because not all of the implicit costs have been considered.

• should alter the rate of output in order to increase profitability.

• should cut his own salary in order to reach the break-even point.

• is earning less than he would if he worked for someone else.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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