Which of the Following Is NOT a Correct Definition of the Break-Even

question 102

Multiple Choice

Which of the following is NOT a correct definition of the break-even point?

• A)the point where total sales equals total expenses.
• B)the point where total profit equals total fixed expenses.
• C)the point where total contribution margin equals total fixed expenses.
• D)the point where total profit equals zero.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given price level and over a specific period.

Positive Externalities

Benefits received by third parties who are not directly involved in a transaction or activity, leading to potentially under-produced goods or services in a free market.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Social Value

The importance or worth of something in terms of its contribution to society or the community.