If a monopolist is incurring short-run losses, this means that his

If a monopolist is incurring short-run losses, it means that his selling price is below the short-run marginal cost. In other words, the cost of producing one more unit of the good is higher than the revenue received from selling that unit. This situation occurs because the monopolist has set a price that is too low and cannot cover all of its costs, including fixed costs. This is because in the short-run, the monopolist is not able to adjust its fixed costs, such as rent and salaries, which are already committed. As a result, the monopolist is making a loss in the short-run.