If the firm produces an output level below its break-even point, then the firm will earn negative economic profits.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Negative Economic Profits

A situation where a firm's total revenues are less than its total costs, including both explicit and implicit costs, indicating a loss.

Output Level

The quantity of goods or services produced by a company, industry, or economic system at a given time.