Skip to main contentSkip to solution

Which of the following statements are true?

(A) The break-even point is the level of production where the revenue from sales is equal to the cost of production and marketing.

(B) If R is the total revenue collected by a company when it sells xx units of a product at a price of p per unit, then R is given by R=pxR=px.

(C) Let C=C(x)C=C(x) be the total cost of producing and marketing xx units of a product, then marginal cost, MC=dCdxMC=\frac{dC}{dx}.

(D) If AC is the average cost, then AC=xCAC=\frac{x}{C}.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

(A) is the definition of break-even, (B) revenue == price ×\times quantity, and (C) marginal cost is the derivative of total cost: all correct.

(D) is wrong: average cost is AC=CxAC = \frac{C}{x}, cost per unit, not xC\frac{x}{C}.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question