Consider a perfectly competitive market for catfish. Fishers who catch catfish clean and package them before offering them for sale.

Consider a perfectly competitive market for catfish. Fishers who catch catfish clean and package them before offering them for sale. The graph below shows the cost curves of a typical firm in the market.On the appropriate cost curves below, use the red point (cross symbol) to indicate the shutdown point (the lowest price at which the firm will not shut down, and the corresponding quantity the firm will produce at that price). Then use the black point (X symbol) to indicate the break-even point (the price at which the firm will earn zero economic profits, and the corresponding quantity the firm will produce at that price). Drop lines will automatically extend to both axes.