The Ceteris Paribus Assumption Means

question 148

Multiple Choice

The ceteris paribus assumption means

• A) favors are returned in kind.
• B) this is the proof of the matter.
• C) from many, one.
• D) other things are equal.

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Definitions:

Financial Break-even

The point at which a company's total revenues are exactly equal to its total expenses, resulting in neither profit nor loss.

Variable Costs

Charges that adjust in line with changes in production volume or output quantity.

Required Return

A rephrasing of Required Rate of Return; it's the expected return that investors demand for an investment in a particular asset, based on its risk.

Cash Break-even

The point at which a business generates enough cash flow to cover its operating expenses and capital costs.