If a firm sells more than the break-even quantity,
A)It will make a profit
B)It will only cover the variable costs
C)It will make a loss
D)A firm is unable to sell above the break-even quantity

Question

​If a firm sells more than the break-even quantity,
A)​It will make a profit
B)It will only cover the variable costs
C)It will make a loss
D)​A firm is unable to sell above the break-even quantity

Quizplus · Accepted Answer

If a firm sells more than the break-even quantity, it will make a profit. The break-even quantity is the point where the total revenue equals the total cost, including fixed and variable costs. Therefore, any quantity sold above the break-even point will generate a profit.

​If a Firm Sells More Than the Break-Even Quantity

If a Firm Sells More Than the Break-Even Quantity