Question

break even point is determined by the intersection of
a: total revenue and total cost curve
b: marginal revenue and marginal cost
c: marginal revenue and total revenue
d: none of the above
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Answer 1

a

if the merchant is not able to request the preliminary expenses which he had made to produce the good. He is not in a position to move further in the sense to produce the next level of output.it is a common sense that producing the good which gives no benefit is nothing but time waste so if the total revenue is equal to the total cost he is in a stage where he doesn't get the profit so he may shut down his economic activity which is nothing but breakeven point

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