The Effects of a Loss

  • Richard Kahn


In this chapter will be considered various questions that arise when a firm’s production is carried on at a loss. The treatment of these questions will be primarily directed towards a firm producing under conditions of perfect competition, which was the subject of the last chapter; and perfect competition will throughout be an implicit assumption. But it will easily be seen that most of the conclusions are applicable in a general sort of way even when competition is not perfect. The nature of their application is usually obvious and for the sake of simplicity in exposition it will not be specified. A single example will probably suffice. It will appear that under certain conditions the prime cost curves of a firm are raised and consequently, under conditions of perfect competition, its output is reduced. But just as surely, if in a different way, the same result follows when the market is imperfect.


Fixed Cost Fixed Capital Prime Cost Perfect Competition Cotton Industry 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 2.
    D. H. Robertson, A Study of Industrial Fluctuations, London, P. S. King, 1915, p. 34.Google Scholar

Copyright information

© Richard Kahn 1989

Authors and Affiliations

  • Richard Kahn
    • 1
  1. 1.University of CambridgeCambridgeUK

Personalised recommendations