The Short-Run Break-Even Price Is

question 265

Multiple Choice

The short-run break-even price is

• A) the price at which a firm's total revenues exceed total costs.
• B) the point at which the firm's total costs are maximized.
• C) the price at which a firm's total revenues equal its total costs.
• D) the point at which the firm's implicit costs are maximized.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Shift Demand

A change in the amount of a product that consumers are willing and able to purchase at any given price level, typically caused by changes in consumer preferences, income, or prices of related goods.