A monopoly firm can operate at three different points: earning economic profits by charging a price above costs, operating at a loss by charging a price below costs, or breaking even where price equals costs. A perfectly competitive firm can also experience economic profits, losses, or break even depending on whether total revenue exceeds, is less than, or equals total costs. For a monopoly, the socially optimum price is one that covers costs plus a reasonable profit, while the fair return price allows recovery of normal costs of production.