Which of the following are true for the given graph ?
(A) Break even point is at x = 10
(B) Break even point is at x= 6
(C) Break even point is at x =0
(D) Fixed cost is 20
(E) Fixed cost is 0
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B) and (D) Only
Break even point is the level of output where total revenue equal total cost.
This can be observed at $x=6$.
Fixed Cost are express that do not vary with level of production. They even occur at 0 level of production.
At 0 level of production, the cost is 20.