Economics B A-Level
Break-even analysis
What Break-even analysis means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Break-even analysis
Check what you remember
Read the wording for your board, then hide it and explain Break-even analysis in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A model that relies on simplifying assumptions which limit its real-world accuracy, including that all output is sold and costs behave in set ways.
Topics that use Break-even analysis
- The relationship between revenue and costs (Pearson Edexcel A-Level)
Related terms
- Break-even output
- Break-even point
- Business viability
- Contribution per unit
- Economies of scale
- Financial risk
- Fixed costs
- Margin of safety
Using Break-even analysis in the exam
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