Which of the Following Conditions Would Cause the Break-Even Point

question 42

Multiple Choice

Which of the following conditions would cause the break-even point to decrease?

• A) total fixed costs increase
• B) unit selling price decreases
• C) unit variable cost decreases
• D) unit variable cost increases

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Definitions:

Domestic Demand Curves

Graphs showing the quantity of a good that consumers in a domestic market are willing and able to purchase at various prices.

Import Demand Curves

Charts representing the volumes of a product that an economy is ready to import at various price points.

Export Supply Curves

A graphical representation showing the relationship between the quantity of a good that producers are willing to export and the price of the good in the international market.

Equilibrium World Price

The price at which the quantity of a good supplied globally equals the quantity demanded, in international trade.