What is the break even point?

Marginal revenue equals marginal cost

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Average revenue equals average cost

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Total revenue equals total cost

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None of the above

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Solution

The correct option is C Total revenue equals total cost
Break-even point is that point where the producer is able to recover the total cost of production through sale of output and incurs no profit or loss. The total revenue here must equal the total cost for the firm to break-even at a given level of production of output.

Suggest Corrections

Units Sold	Price (Rs.)	Total Revenue (Rs.)	Marginal Revenue (Rs.)
$5$ $4$ $3$	$6$ $7$ $8$	- - -	- - -