The level of production where the revenue from sales is equal to the cost of production and marketing is known as |
the marginal cost point. the fixed cost point. the break even point. the fixed profit point. |
the break even point. |
The correct answer is Option (3) → the break even point. The break-even point (BEP) is the level of production at which total revenue equals total cost, including production and marketing costs. At the break-even point, the firm makes neither profit nor loss. |