loss minimization

Loss minimizationclick for a larger image
Fig. 113 Loss minimization.

loss minimization

the objective of the FIRM in the SHORT RUN when confronted with adverse market conditions that prevent PROFIT MAXIMIZATION. Profit maximization or loss minimization requires the firm to produce at that level of output where MARGINAL COST equals MARGINAL REVENUE.

For example, a firm under PERFECT COMPETITION would produce output OQ in Fig. 113. Adverse short-run conditions, however, may mean that at this level of output, price (OP) is insufficient to cover average total cost (QC) so that the firm makes losses (equal to area PCXY in Fig. 113). In the short run, the firm will continue to produce this level of output as long as price is sufficient to cover AVERAGE VARIABLE COST (OC1) and make some CONTRIBUTION (equal to area PC1ZY) towards FIXED COSTS, although in the LONG RUN a continuation of this situation of loss-making would force the firm to leave the market.

References in periodicals archive ?
Network reconfiguration and distributed generation (DG) allocation are proposed approaches for loss minimization and system improvement.
Junghare, "Reactive power control using dynamic Particle Swarm Optimization for real power loss minimization," International Journal of Electrical Power & Energy Systems, vol.
The resulting observability is subsequently used by specifically developed robust control and coordination approaches, Which utilize existing actuation capabilities for voltage quality enhancement and loss minimization in the lv grid.the use of off-the shelf components, The system level resilience and security solution, And the offered customizability of the net2dg approach specifically address the needs of small and medium-sized dsos (less than 100.000 clients).
The authors have used particle swarm optimization algorithm for the problem of simultaneous placement of DG and DSTACOM with an objective of total power loss minimization [12].
Deenadhayalan, "Real power loss minimization using firefly algorithm," International Journal of Advanced Information and Communication Technology, vol.
In light of this issue, this paper introduces the opportunity loss minimization criterion into the newsvendor model.
Regarding network reconfiguration for loss minimization, one of the first papers published in this field was presented by Merlin and Back [4], who developed a heuristic approach.
The different objectives are fuel cost minimization, active power loss minimization, emission minimization, voltage profile, and voltage stability enhancement.
for better, finer, and more effective line flow control, loss minimization, and voltage control." (1) FACTS (flexible alternating current transmission system) devices use power electronic components ranging from slow thyristors through fast MOSFETs as switches.
'' Reactive power control using dynamic Particle Swarm Optimization for real power loss minimization'' Electrical Power and Energy Systems 41 (2012) 133136
Given the theoretical importance of these issues, Experiment 2 was designed to examine the sensitivities in loss minimization and gain maximization games with the same participants.
The Tale: Benjamin Graham's 1949 book focused on his strategy of loss minimization over profit maximization.