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 units of a product at a price of p per unit, then R is given by .
(C) Let be the total cost of producing and marketing units of a product, then marginal cost, .
(D) If AC is the average cost, then .
Choose the correct answer from the options given below:
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 units of a product at a price of p per unit, then R is given by .
(C) Let be the total cost of producing and marketing units of a product, then marginal cost, .
(D) If AC is the average cost, then .
Choose the correct answer from the options given below:
Solution
(A) is the definition of break-even, (B) revenue price quantity, and (C) marginal cost is the derivative of total cost: all correct.
(D) is wrong: average cost is , cost per unit, not .
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