Monthly Archives: Şubat 2023

There are both positive and negative effects of transacting at the break-even price. In addition to gaining market shares and driving away existing competitions, pricing at break-even also helps set an entry barrier for new competitors to enter the market. Eventually, this leads to a controlling market position, due to reduced competition. Sales below the […]

The firm invests $200,000 in fixed costs, including building a factory and buying machines for manufacturing. At this price, the homeowner would not see any profit, but also would not lose any money. The breakeven point is important because it identifies the minimum sales volume needed to cover all costs, ensuring no losses are incurred. […]