Figure 11-6 -A Break-Even Chart Is a Graphic Presentation

question 14

Multiple Choice

Figure 11-6
-A break-even chart is a graphic presentation

• A) that shows the maximum number of units that will be sold at a certain price.
• B) of a break-even analysis that shows where total revenue and total cost intersect to identify profit or loss for a given quantity sold.
• C) that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues.
• D) that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability.
• E) is a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.

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Definitions:

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods consumed, often resulting in market stability.

Short-Run Aggregate Demand

The total amount of goods and services that will be purchased at all possible price levels in an economy in a short period.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in an economy and the total output produced by firms.

Long-Run Equilibrium

A state in which supply and demand are balanced over the long term, typically characterized by full employment of resources and stable prices.