A break-even point is:
A)the point of greatest difference between marginal revenue and marginal cost.
B)the point at which total revenue and total cost are equal and beyond which profit occurs.
C)the point at which marginal revenue equals marginal cost.
D)the point at which total revenue and average revenue converge.

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue and total cost are equal, and beyond which profit occurs. It is the point where the business is not making any profits but is not incurring any losses either. This is a critical point for businesses to determine as it helps in decision-making about pricing, production, and sales. Option A refers to the point of maximum profit, which is not the same as the break-even point. Option C refers to the point of profit maximization, which is also not the same as the break-even point. Option D refers to the point where total revenue and average revenue are equal, which is not the same as the break-even point.

A Break-Even Point Is