The quantity at which total revenue and total costs are equal is referred to as the:
A)marginal cost point.
B)break-even point.
C)minimum profit point.
D)total cost point.

Question

Quizplus · Accepted Answer

The break-even point is the quantity at which total revenue and total costs are equal. This is an important point for businesses to consider when determining pricing and production levels. The marginal cost point is the point at which the cost of producing one additional unit of output is equal to the additional revenue generated by selling that unit. The minimum profit point is the point at which the profit is at its lowest, but does not necessarily equate to the break-even point. The total cost point is not a commonly used term in business analysis.

The Quantity at Which Total Revenue and Total Costs Are