Just like profits, losses are equal to the difference between total revenue and total cost shown in the prior graphs.
Unlike the previous case, this is a negative number since total cost is greater than total revenue. The shaded area to the right represents losses.
If a firm is incurring economic losses it doesn't necessarily mean that the owner(s) aren't able to
pay themselves a salary or wage, or that they aren't able to support
themselves (though they may not be able to accomplish either).
It does mean that they could earn more in some other endeavor
for which they are qualified or for which they have the necessary
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