A monopolist suffering losses might try advertising to boost demand, if it could find the financing. The added revenue would have to exceed the added costs of advertising plus enough to wipe out losses. The firm could also attempt to cut costs. The point is that there are no natural market forces, as there were in perfect competition, that will guarantee that these losses will vanish with the industry intact.

    For simplicity we typically imagine that firms have already made costs as low as possible, but this isn't always true in practice. (Be sure you know what your prof wants you to assume when you're taking a test!)

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