Break-Even Analysis Can Show

question 34

Multiple Choice

Break-even analysis can show:

• A) which prices will not be profitable.
• B) the most profitable price for a firm's product.
• C) how the firm's variable cost per unit will drop as output rises.
• D) the firm's most profitable output level.
• E) when a firm should cut its price to increase sales.

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Definitions:

Northeasterly

Pertaining to or coming from the northeast direction.

Indifference Curves

Graphs showing different bundles of goods between which a consumer is indifferent, displaying preferences for certain combinations of two commodities.

Intersect

The point at which two or more lines or paths cross or meet.

Indifference Curve

A graphical representation in economics indicating different combinations of two goods that provide the consumer with equal levels of satisfaction.