Exhibit 28-1 ​ Refer to Exhibit 28-1. If the Gini Coefficient Equals 1

question 55

Multiple Choice

Exhibit 28-1 ​

Refer to Exhibit 28-1. If the Gini coefficient equals 1, then the Lorenz curve is

• A)point B.
• B)line OB.
• C)the horizontal axis from 0 to A.
• D)line AB.
• E)the horizontal axis from 0 to A and the line AB.

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Definitions:

Break-even Point

The level of production or sales at which total revenues equal total expenses, and the business makes neither a profit nor a loss.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Point

The point at which total costs and total revenue are equal, meaning that there is no net loss or gain, and the business is not making a profit.

Direct Materials Cost

The cost of raw materials directly used in the production of products or services.