Asked by Lunatic Kitten on Jun 18, 2024
Verified
The firm's break-even point is
A) at point J.
B) at point K.
C) between points J and K.
D) above point K.
Break-even Point
The point at which total costs and total revenue are equal, meaning there is no net loss or gain.
- Illuminate the importance of identifying the break-even and shutdown thresholds in the context of a company's functioning.
Verified Answer
TM
Tracey MacDonaldJun 22, 2024
Final Answer :
B
Explanation :
The break-even point is where the total revenue line intersects the total cost line. In the given graph, it is at point K, as it is the point where the total revenue line intersects the total cost line. Therefore, the correct choice is B.
Learning Objectives
- Illuminate the importance of identifying the break-even and shutdown thresholds in the context of a company's functioning.