Break-Even Is the Number of Units at Which

question 131

Multiple Choice

Break-even is the number of units at which:

• A) total revenue equals price times quantity.
• B) total revenue equals total variable cost.
• C) total revenue equals total fixed cost.
• D) total profit equals total cost.
• E) total revenue equals total cost.

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Definitions:

Ability to Pay

The principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically related to income or wealth levels.

Progressive Income Tax

A tax system where the tax rate increases as the taxable income increases, aimed at redistributing income more equitably.

Ability-to-Pay Principle

A taxation principle suggesting that taxes should be levied based on an individual's or entity's ability to pay, often implying higher rates for higher income levels.

Tax Equity

The fairness of a tax system, judged by how evenly or proportionately tax burdens are distributed among different groups of taxpayers.