At the Break-Even Point

question 97

Multiple Choice

At the break-even point

• A) profits are maximized.
• B) variable costs are equal to total fixed costs.
• C) target profit is achieved.
• D) total revenue is equal to total cost.

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Definitions:

Tax Burden

The measure of the total taxes paid by an individual, corporation, or another entity relative to its income, assets, or consumption levels.

Elastic

A characteristic of a good or service that indicates a greater than proportional change in quantity demanded or supplied in response to price changes.

Inelastic

Describes demand or supply that is relatively unresponsive to price changes, meaning quantity demanded or supplied changes little when price changes.

Unitary Elasticity

A situation where a one percent change in the price of a product results in a one percent change in the quantity demanded.