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The ‘break-even’ point is where
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- marginal revenue equals marginal cost
- average revenue equals average cost
- total revenue equals total cost
- None of the above
- marginal revenue equals marginal cost
Correct Option: C
Break-even is the point of balance between making either a profit or a loss. In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has “broken even”. A profit or a loss has not been made, although opportunity costs have been “paid”, and capital has received the risk-adjusted, expected return.
