The Figure Below Shows the Demand (D) and Supply (S)

question 92

True/False

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be.

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Definitions:

Break-even Sales

The amount of revenue from sales needed to cover all of a company’s operating expenses, resulting in neither profit nor loss.

Unit Variable Costs

The costs that vary directly with the production volume, including materials and labor, on a per unit basis.

Break-even Point

The point at which total revenues equal total costs, resulting in no profit or loss.

Break-even Sales

The amount of sales revenue needed to cover all fixed and variable costs, leading to a situation where there is no profit or loss.