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.

Name: 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.
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Question

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If a firm uses more labor and less machinery, its fixed costs will decrease and its variable costs will increase. This will result in a lower break-even point.

All Else the Same, If a ﬁRm Revises Its Production