# Loss Minimization

## Loss Minimization

- The marginal conditions for profit maximization are the same as those for loss minimization. i.e. Equate MC & MR

## What level of output maximizes profits

## (minimizes losses) if:

## MC = 4 Q

## MR = 16

## Solve MC = MR to obtain Q* = 4

## TR = $64

## TC = $40 + $32 = $72

## Try drawing a graph of these equations.