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Break-even analysis

Break-even analysis: Managerial Economics
Break-even analysis: Managerial Economics

Break even relates to situations where a firm covers all of its costs, but generates no profit. In other words, revenues equal costs. Decision makers first need to know their break-even point to decide whether to enter a market or not. Secondly, they should optimize their strategy to lower the break-even point. This often allows for higher returns at lower risk.

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Skill Level Intermediate
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