Asked by
Nayeli Carrillo
on Oct 12, 2024
Verified
Which statement is false?
A) The break-even point lies on the firm's short-run supply curve.
B) The firm's short-run and long-run supply curves both run along the marginal cost curve.
C) In the short run a firm losing money will operate if the price is between the break-even point and the shutdown point.
D) The lowest price acceptable to a firm in the short run is at the break-even point.
Break-Even Point
The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss for a business.
Short-Run Supply Curve
A graphical depiction showing the relationship between the price of a good and the quantity supplied over a short period, wherein some inputs are fixed.
Long-Run Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, accounting for adjustments in all factors of production.
- Ascertain the prerequisites for a company's shutdown threshold and break-even junctures.
- Identify the differences among average total cost, average variable cost, and marginal cost, as well as their importance in the operation of a business.
Verified Answer
AB
Learning Objectives
- Ascertain the prerequisites for a company's shutdown threshold and break-even junctures.
- Identify the differences among average total cost, average variable cost, and marginal cost, as well as their importance in the operation of a business.