The level of production where the revenue from sales is equal to the cost of production and marketing is known as
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → the break even point.
The break-even point is the level of output at which total revenue equals total cost, R(x) = C(x); here the total cost is the cost of production and marketing. At this level the firm makes neither profit nor loss.