The point of minimum average cost at which the supply curve cuts the long run average cost curve is called?

Option 1 -> Super Normal Profit refers to earning above normal profit, not the minimum cost point.

Option 2 -> Opportunity cost is the cost of the next best alternative, unrelated to this specific intersection point.

Option 3 -> Break Even Point is where price equals minimum average cost, and the firm covers all costs with zero economic profit.

Option 4 -> Shut Down Point is where price equals minimum average variable cost in short run, below which firm should cease operations.

Hence, Break Even Point -> At this point, the supply curve intersects the long run average cost (LRAC) curve at its minimum. Here, Price = Minimum LRAC, meaning Total Revenue = Total Cost. The firm earns zero economic profit but covers all costs including normal profit (opportunity costs). This is the minimum price at which a firm can sustain operations in the long run without making losses. Below this point, the firm would exit the market in the long run. -> correct