A Firm's Operating Breakeven Point Is the Point at Which

question 89

Multiple Choice

A firm's operating breakeven point is the point at which ________.

• A) total operating costs equal total fixed costs
• B) total operating costs are zero
• C) EBIT is less than sales
• D) EBIT is zero

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Definitions:

Marginal Analysis

An examination of the benefits and costs of one additional unit of production or consumption.

Marginal Benefit

Refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Benefit

The additional satisfaction or utility gained by consuming one more unit of a good or service, important for decision-making in consumption and production.

Marginal Benefit

The extra pleasure or benefit gained by an individual from consuming one more unit of a product or service.