Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Linear Programming

Question:

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 :

Options:

(A) and (E) Only

(B) and (E) Only

(C) and (D) Only

(B) and (D) Only

Correct Answer:

(B) and (D) Only

Explanation:

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.