Breakeven economics is a business strategy that seeks to determine at what point revenues will equal costs and profits become zero. By analyzing present and future market conditions, businesses can identify the most effective combination of pricing, output quantity and cost management practices that will help them achieve their financial goals faster. It’s about understanding how much you have to sell in order to break even, and then striving to exceed that mark in order to turn a profit. With breakeven economics, businesses are encouraged to plan for long-term success through careful analysis and execution of strategies that maximize their returns.