Break-even Price

… a core term used in Economic Analysis and Atlas102

Definition

Investopedia (reference below) defines break-even price as the amount of money for which a product or service must be sold to cover the costs of manufacturing or providing it.

Investopedia goes on to say:

“Break-even prices can be translated to almost any transaction. For example, the breakeven price of a house would be the sale price the owner would need to get to cover the home’s purchase price, interest paid on the mortgage, hazard insurance, property taxes, maintenance, improvements, closing costs and real estate sales commission. At this price, the homeowner would not see any profit, but also would not lose any money.”

Atlas topic, subject, and course

Producer Theory and Competition (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Investopedia, Breakeven Price, at http://www.investopedia.com/terms/b/breakeven-price.asp, accessed 7 May 2016.

Page created by: Ian Clark, last modified 7 May 2016.