
Michael S. answered 09/01/19
PhD in economics with teaching experience
Less than its costs. Revenue is money coming into the firm from selling the product, and cost is money flowing out to pay the labor, capital, and other inputs needed to make the product. Profits=revenue-costs, so if the firm's costs are greater than its revenue, it is losing money overall and is making a loss. If profits are negative, the firm is making a loss.