when will a producer be in equilibrium in case of losses?

In case of perfect competition, in short run a firm would be earning normal losses if minimum of SAC > Price ≥ minimum of SAVC. In this particular case, the prevailing market price is so low that firm is not able to cover its fixed costs fully (as price is below the minimum of SAC) but the firm is able to cover its variable costs (as the price is above the minimum point of SAVC). If the price falls even below SAVC the firm will shut-down as in this case the firm would not be able to cover even the variable cost.

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