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* Chapter 9: Problems 3, 4, and 5 * Chapter 10: Problems 2, 6, and 10

Use the Internet or the Strayer Library to research the economic costs involved in conducting a break-even analysis for a good or service of your choice. Be prepared to discuss.
Break-even exists when a business makes neither a profit nor a loss. This occurs at the level of output where total costs equal total revenue, i.e. TC = TR.
Some firms have to consider Actual cost, opportunity cost, explicit cost, implicit cost,

Use the Internet or the Strayer Library to research a company that is competing in a purely (or perfectly) competitive market. Be prepared to discuss. * Perfectly Competitive Markets:
"Market with many buyers and sellers, so that no single buyer OR seller has a significant impact on price...most agricultural markets are close to being perfectly competitive."

When you have a product with no distinguishing characteristics, such as corn, then the market ends up setting the price by how much supply is on the market compared to the demand. That means sellers on commodity markets are "price takers." One corn farmer cannot say, that while his corn husk is more expensive, it comes with a sunroof or granite counter tops. Holding the quality of corn constant, there is no difference between corn from one farmer or another. And when it comes to price, if one corn farmer prices his crop below another, he will just sell it all at a lower price than his competitors. Because there are so many suppliers, the lowering of price by one is not enough to lower the overall market price. However, if GM slashes prices on its trucks, then other manufactures will have to respond by either lowering their prices or offering more (in terms of service, features, quality, etc.) in order to keep from losing sales. ...for example.

It has nothing to due with barriers to entry,

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