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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 these
- marginal revenue equals marginal cost
Correct Option: B
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.
