What Does a Break-Even Point of 100 Units Mean to a Firm

question 118

Multiple Choice

What does a break-even point of 100 units mean to a firm?

• A) The firm must sell 100 units to maximize its profits.
• B) Fixed costs plus variable costs equals 100 units.
• C) By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
• D) If the firm sells 100 units, its total revenues will equal its total costs.

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Definitions:

Köhler

A psychologist known for his work in the field of Gestalt psychology, particularly his research on problem-solving in animals.

Koffka

Kurt Koffka, a German psychologist, was a co-founder of Gestalt psychology, which focuses on holistic perception and problem-solving.

Humanistic Theory

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.

Existential

Pertaining to existentialism, a philosophy that emphasizes individual freedom, choice, and existence.