The breakeven point is the point where price equals a firm's average total cost.

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The breakeven point is the point where a firm's total revenue equals its total costs, including both variable and fixed costs. At this point, the firm is neither making a profit nor incurring a loss. When price equals the average total cost, the firm is able to cover all of its costs, including both variable and fixed costs, and is therefore at the breakeven point.

The Breakeven Point Is the Point Where Price Equals a Firm's