Question : At the "break-even point",
Option 1: the industry is in equilibrium in the long run
Option 2: the producers suffer minimum losses
Option 3: the seller earns maximum profit
Option 4: the firm is at a zero-profit point
Correct Answer: the firm is at a zero-profit point
Solution : The correct answer is the firm is at a zero-profit point
In business and economics, the "break-even point" occurs when a company's entire revenue matches its overall expenses, leading to neither a profit nor a loss. Thus, it is the point at which a company's income covers all of its expenses, including both fixed costs (costs that do not fluctuate with production levels, such as rent and salary) and variable costs (costs that vary with output, such as raw materials and labour).
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