Sir--When PC firm operates at a loss under short run, 'profit maximising output is the same as loss minimising level of output'. Sir Does this make sense ? If yes, then what does this imply ?
Good. Normally we call it as profit maximising output. It becomes almost a convention But I feel the same way as you feel. We have to make a difference between equilibrium condition of a firm and condition for nature of profit. A firm in PC after establishing equilibrium, it has to examine profit contion. In the short run firm may earn maximum profit or normal profit or minimise loss. We must have it like this.
