[amp_mcq option1=”Total revenue equals the total opportunity cost” option2=”Economic profit is maximized” option3=”Total cost is minimized” option4=”Marginal revenue equals marginal cost” correct=”option4″]<\/p>\n
The correct answer is D. Marginal revenue equals marginal cost.<\/p>\n
Breakeven point is the point at which a company’s total revenue equals its total costs. At this point, the company is neither making a profit nor a loss.<\/p>\n
Marginal revenue is the additional revenue that a company earns by selling one more unit of its product. Marginal cost is the additional cost that a company incurs by producing one more unit of its product.<\/p>\n
When marginal revenue equals marginal cost, the company is producing the optimal amount of output. This is because the company is earning the most revenue for each unit of cost that it incurs.<\/p>\n
Options A, B, and C are incorrect because they do not describe the breakeven point. Option A is incorrect because total revenue does not equal total opportunity cost at the breakeven point. Option B is incorrect because economic profit is not maximized at the breakeven point. Option C is incorrect because total cost is not minimized at the breakeven point.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Total revenue equals the total opportunity cost” option2=”Economic profit is maximized” option3=”Total cost is minimized” option4=”Marginal revenue equals marginal cost” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45989","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n