All else the same, if a firm revises its production process to use more labour and less machinery, the firm will have a decreased accounting break-even.

Question

Quizplus · Accepted Answer

Switching from machinery to labor may not necessarily decrease the accounting break-even point, as it depends on the relative costs of labor versus machinery. If labor is more expensive than the machinery costs it replaces, the firm's fixed and variable costs could increase, potentially raising the break-even point.

All Else the Same, If a Firm Revises Its Production