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JAMB Economics 1988 Question 13

Question 13

Theory of Costs and Revenue

The output at which total revenue equals total cost is known as

  1. A.profit-maximizing output
  2. B.break-even level output
  3. C.loss-minimizing output
  4. D.least-cost output.
Show the answer and explanation

Answer: B (break-even level output)

Explanation

At the break-even output the firm makes neither profit nor loss because total revenue equals total cost.