In what situation will a firm incur a loss?

Question

Quizplus · Accepted Answer

A firm will incur a loss when the price is below its average total cost at all levels of output. This means that the firm is not able to cover all of its costs, including both variable and fixed costs, with the revenue it is generating at a given price. If the firm incurs a loss, it may choose to exit the market in the long run if it cannot find a way to reduce its costs or increase its revenue to cover its expenses.

In What Situation Will a Firm Incur a Loss