Which of the Following Correctly Defined a Firm's Operating Break-Even

question 28

Multiple Choice

Which of the following correctly defined a firm's operating break-even?

• A)EBIT is equal to total sales.
• B)EBIT is equal to EBDITA less total fixed costs.
• C)EBIT is less than total sales less total variable costs.
• D)EBIT is equal total sales less total variable and fixed costs.

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Definitions:

Bowed Inward

Describes a concave shape of an economic curve, such as the production possibility frontier, indicating increasing opportunity costs.

Bowed Out

A term used to describe a situation where a party withdraws from an agreement, competition, or situation.

Adaptable

The ability to adjust or modify oneself or processes to suit different conditions or environments.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.