The short-run break-even price
A) is the price at which the firm's current liabilities are paid off.
B) is the price at which a firm's total revenues equal total costs.
C) occurs at the output at which the firm yields a below normal rate of return.
D) occurs at the output at which the firm yields a positive economic profit.
Answer: B
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If a straight line passes through the point x = 14 and y = 3 and also through the point x = 4 and y = 10, the slope of this line is
A) seven-tenths. B) negative seven-tenths. C) negative 11 divided by 6. D) 6 divided by 11.
Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her accounting profit?
A) $14,000 B) $21,000 C) $31,000 D) $38,000