A firm reaches a break-even point (normal profit position) where,

CA Foundation · Business Economics · MTP · September 2024
A firm reaches a break-even point (normal profit position) where,
(A) A. Marginal revenue curve cuts the horizontal axis.
(B) B. Marginal cost curve intersects the average variable cost curve.
(C) C. Total revenue equals total variable cost.
(D) D. Total revenue and total cost are equal.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Total revenue and total cost are equal.

Topics: Price Determination in Different Markets

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